1. The Association of German Banks in economic and financial policy – a German view on lobbying and banking supervision Manfred Weber Chief Executive and Member of the Board of Directors Association of German Banks

2. 2 History and membership Founded in 1951 in Cologne. Entry requirement: private legal form. Membership: 222 private commercial banks. Our members hold a share of around 40 % of the German banking market. They have a total of around 190,000 employees.

3. 3 Membership structure Membership total: 222 private commercial banks.  5 big banks: Deutsche Bank, Dresdner Bank, Commerzbank, HypoVereinsbank, Postbank.  97 regional banks and other commercial banks.  29 private bankers.  88 foreign banks.  3 banks with special functions.

4. 4 Our mandate To give advice to members and to co-ordinate overlapping issues. Active in all fields of importance to the banks and therefore not restricted to dealing only with banking issues in a narrow sense. To represent the interests of our members, especially in the field of banking and economic policy, vis-à-vis:  parliament, government, political parties,  central bank, supervisory authorities,  European Commission, European Parliament, ECB  international standard-setters and regulators outside Europe. Operation of Ombudsman scheme, Deposit Protection Fund, “Bank-Verlag”.

5. 5 Our environment Member associations: 11 regional associations and the association of ship mortgage banks Big banks, regional banks and other commercial banks, private bankers, mortgage banks and branches of foreign banks Other associations European bodies (Commission, Council, Parliament, Coreper) German parliament and government “ZKA” banking associations Federal supervisory authorities General public Ombudsmann Deposit guarantee scheme Members Monetary authorities (Bundesbank, ECB) Bank-Verlag

6. 6 Banking supervision in Germany Before 1 May 2002:  Joint banking supervision by Federal Banking Supervisory Office (BAKred) and Bundesbank (supportive role).  Separate supervisory offices for securities trading and insurance. Since 1 May 2002:  Single regulator/supervisor for banking, securities trading and insurance: Federal Financial Supervisory Authority (BaFin).  Bundesbank continues support in banking supervision.

7. 7 Advantages of the German single supervisor/regulator Single regulator improves communication flows and creates synergies. Creation of BaFin improved funding base, allowing more efficient regulation and supervision (financed 100% by financial institutions, independent of federal budget). Single regulator means a more powerful voice in standard-setting bodies at both EU and international level.