Act 1961
German Banking Act
Kreditwesengesetz
Issued by Federal Financial Supervisory Authority
Effective: 10 Jul 1961
Last amended: 12 May 2026
Plain-English summary
The Kreditwesengesetz (KWG) represents Germany’s fundamental statute for banking regulations, formulated with the objective of protecting depositors, securing the safety of assets held by financial companies, and avoiding any structural disturbance in the economy of the nation. The Kreditwesengesetz is regulated through a two-tier structure by BaFin (as the sovereign regulator) and the Deutsche Bundesbank (as the operational auditor). All credit institutions and financial services institutions operating in Germany are governed under the Kreditwesengesetz. The Kreditwesengesetz acts as the ultimate instrument for implementing the prudential directives of Europe into German corporate law.
Who it applies to
Banking · NBFC / Non-bank Lending
Topics
Prudential & Capital
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