The main purpose of this peer review is to examine two topics that are relevant for financial stability and important for Germany: the macroprudential policy framework and microprudential supervision. Both topics were included in the key recommendations of the IMF’s assessment of Germany under the FSAP in 2011, and are topical for the broader FSB membership. The peer review focuses on the steps taken to date by the German authorities to implement reforms in these areas, including by following up on relevant FSAP recommendations. Good overall progress has been made in addressing the FSAP recommendations in both areas, although several elements of the reforms are ongoing. Going forward, the authorities need to expeditiously develop and implement a comprehensive macroprudential strategy, and to further strengthen the banking and insurance supervisory frameworks in order to enhance risk identification and allow for timely intervention in financial institutions. An important driver of developments in this context has been, and will continue to be, EU initiatives.