Group supervision and corporate governance

The ProCredit group operates in accordance with international best banking practices and with German regulatory standards. Since January 2012, ProCredit Holding has been licensed by the German Federal Financial Supervisory Authority (BaFin) as the “superordinated company” of the group, which according to section 10a(3)(1) of the German Banking Act (Gesetz über das Kreditwesen or KWG) is responsible for maintaining an adequate level of equity for the group and ensuring that all reporting, risk management and compliance obligations required under German banking regulations (specifically as defined in section 25a of KWG) are met, particularly in relation to risk management and the prevention of money laundering, fraud and the financing of terrorism.

Appropriate controlling, risk management and compliance systems are in place across the group, in line with the principles and standards set forth in BaFin’s policy document, “Minimum Requirements for Risk Management”, commonly referred to as “MaRisk”.

 

Management and supervision of ProCredit institutions

ProCredit institutions are regulated by their local banking authorities. Appropriate arrangements are in place between the German and local supervisory authorities. Each ProCredit institution’s Supervisory Board is made up of members who are largely appointed by ProCredit Holding. Each ProCredit institution has a management board; in most cases, this is a two- to five-person body comprising local managers who have many years of experience with the ProCredit group and have attended the Fürth Academy.