After Bayern's Champions League quarterfinal defeat to Inter Milan last week, fresh doubts were again raised over Kompany's ability and experience to handle the biggest games.
But Babbel, who spent 17 years with Bayern in two different spells, says the former Manchester City captain retains the full support from those men who matter inside the board room.
He told Tribalfootball.com: "Everyone was clear that Inter Milan was a difficult loss, that you need two top days against Inter Milan to get on with the game.
"They didn't manage to do that. They played well, but not very well. And they weren't the worst team in both games, which was the optical aspect.
"They were dominant, they were on the field, had more chances to score than Inter. But they didn't score the goals up the front and made some slight mistakes at the back.
"If I go 1-0 in the lead and then concede two goals, it's brutal and you can't allow that on this level. It's that simple."
Total fans of Kompany
Babbel added, "He (Kompany) has total support from (football chiefs) Max Eberl and Christoph Freund, they are total fans of him, so nothing will happen.
"But he has to win, of course. If he doesn't win, he'll have a problem.
"He'll have a huge problem. But we assume that with five games and six points in advance, it should be doable (the Bundesliga title) and they should be able to do it."
- Markus Babbel was speaking to Tribalfootball.com on behalf of Golden Panda