Germany

DE · DEU · Europe · Last verified 22 Sep 2026

5 regulators · 6 instruments · 6 obligations · 1 upcoming deadline

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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

Official source

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