ORGANISATION OF ACCOUNTING AND FINANCIAL REPORTING IN GERMAN COMMERCIAL BANKS

Abstract

Accounting and financial reporting in German commercial banks is shaped by national legislation, European prudential regulation, and international standards. Germany’s three-pillar banking system creates significant institutional diversity and reporting complexity. This paper examines the interaction of HGB, IFRS, KWG, MaRisk, FINREP, COREP, and the Basel III/CRR III framework. It identifies three key challenges: limited comparability between HGB and IFRS, disproportionate compliance costs for smaller banks, and overlapping regulatory requirements. To address these issues, the paper proposes a three-tier reporting framework based on institutional size, complexity, and systemic importance, aiming to reduce compliance costs while maintaining effective supervisory oversight.