The German Federal Financial Supervisory Authority (BaFin) brings together under one roof the supervision of banks and financial services providers, insurance undertakings and securities trading. It is an autonomous public-law institution and is subject to the legal and technical oversight of the Federal Ministry of Finance. It is funded by fees and contributions from the institutions and undertakings under its supervision. BaFin is managed by an Executive Board.
BaFin supervises about 2,700 banks, 800 financial services institutions, and over 700 insurance undertakings. BaFin’s By-Laws represent a major set of precepts for how it acts. They contain regulations governing its structure and organisation and its rights and obligations. They also govern the functions and powers of BaFin’s supervisory body, its Administrative Council (Verwaltungsrat), and details of its budget.BaFin also bases the way in which it carries out its supervisory activities on the Mission Statement it gave itself shortly after it was established.
According to this Mission Statement, BaFin’s function is to limit risks to the German financial system at both the national and international level and to ensure that Germany as a financial centre continues to function properly and that its integrity is preserved.