Financial Supervision in Federal Republic of Germany

This thesis deals with the organizational structure of financial supervision in Germany with a view to asses the recently completed institutional integration. First, the overview of theoretical models of financial supervisory agencies is submitted including advantages and disadvantages of such concepts. Being aware of the absence of a sole universal applicable solution of the institutional organization of financial supervision, the fundamental requirements are introduced, generally imposed on every financial regulation system in order to perform its tasks effectively. The emphasis of this paper rests upon presenting the German financial supervision in several terms. The main section surveys the evolution of supervision until the formation of BaFin -- Federal Financial Supervision Agency, the ample scope is devoted to legal issues, the inner organization of BaFin is described in detail and the particular attention is paid to funding. The reality of day-to-day supervisory activities is explored in the passage related to problems of financial supervision, where especially the complex question of mutual cooperation between BaFin and Bundesbank In the field of bank supervision comes to light. The supervision-costs analysis focused on the situation prior to integration and mistakenly assumed course after its implementation supplements the general view. Considering all proposed facts the conclusion offers a review of assumptions ensuring a proper supervisory structure.