The Financial Stability Committee regularly analyses and assesses risks to financial stability. On the basis of its risk assessment, it considers whether, and in what form, macroprudential action is required. The structure of the Financial Stability Committee ensures that the participating authorities exchange relevant information among themselves on an ongoing basis and collaborate in a coordinated manner.
The responsibilities of the authorities within the Financial Stability Committee are allocated as follows:
- The Federal Ministry of Finance suggests matters that are relevant to financial stability and should be discussed by the Financial Stability Committee. In addition, the Federal Ministry of Finance chairs the Financial Stability Committee.
- The Bundesbank identifies and assesses threats to financial stability. It shares its analyses with the Financial Stability Committee, proposes warnings and recommendations if necessary, and evaluates their implementation.
- BaFin ensures financial stability through the use of supervisory tools in its role as the integrated supervisory authority for the banking, insurance and securities sectors. Among others, these tools include macroprudential measures under the Banking Act (Kreditwesengesetz).