Kreditinstituts

Kreditinstitut is a financial institution whose core business is the acceptance of deposits from the public and the granting of credits. Such institutions provide various banking services to households, businesses and public authorities and form the core of the traditional banking sector. The term is used in German-speaking regulatory contexts and corresponds to what in many jurisdictions is called a bank or deposit-taking financial institution.

Regulation and supervision: In Germany, Kreditinstitute are regulated by the Banking Act (Kreditwesengesetz, KWG) and supervised by BaFin and the Deutsche Bundesbank. In the European Union, credit institutions are governed by the CRR/CRD and by national authorities; significant institutions participate in the Single Supervisory Mechanism with direct ECB supervision. They must meet prudential requirements on capital, liquidity, governance and risk management and report to supervisors.

Types and examples: The main forms include commercial or universal banks, savings banks (Sparkassen) and cooperative banks (Genossenschaftsbanken). These are deposit-taking institutions with various ownership and business models. Other lenders, such as leasing companies or microfinance lenders, may not be classified as Kreditinstitute if they do not accept public deposits as their primary function.

Functions and role: Kreditinstitute provide payment services, intermediary financing, and liquidity in the economy, perform maturity transformation, and contribute to monetary policy transmission through credit creation and credit risk management. They are typically protected by deposit guarantee schemes and face ongoing regulatory reporting and oversight.