Special bank at the interface between government and the economy
Bavaria’s reconstruction after World War II and its journey from an agricultural to a high-tech federal state are inextricably linked to LfA. The bank has been campaigning for successful structural policies in Bavaria since 1951. A special organisational structure and supervisory arrangements are necessary so the bank can fulfil its role as a special credit institution at the interface between government and the economy.
The Bavarian State Ministry of Finance, which is the legal supervisory authority, and the Administrative Board act as oversight bodies, supervising the bank’s business. Under this arrangement, the ministry also assumes the rights of the bank’s shareholder, the Free State of Bavaria. The Administrative Board oversees the operational business and ensures LfA discharges its responsibilities. It advises the Management Board, makes recommendations, and can request information.
On the basis of a law amendment dated 26 September 2000, the respective responsibilities of the Administrative Board and the Ministry of Finance were defined more clearly, thus strengthening LfA’s two oversight bodies and improving their monitoring functions. The dual supervision arrangements between the State Ministry of Finance and the Administrative Board has been retained.