>Over a long period Germany has been very famous around the world for its universal banking system.And accordingly Germany has been practicing strict financial regulation and supervision within different sectors of financial system which is distinguished from that of US and that of UK.But since 2000，Germany has set out to make convergence with other developed countries against the background of financial integration both at the EU level and at the global level in order to improve its competitiveness of financial industry.US-derived subprime crisis which broke out in July，2007 has great impact upon Germany’s financial industry，especially upon some giant commercial banks，investment banks and mutual funds，and these trouble-hit financial institutions will trigger some new controversies about financial supervision system in Germany.