Regulation: Bafin warns: Restructuring cases reduce chances of fewer regulations for small banks
Savings banks and cooperative banks are hoping for a reduction in regulations. The Bafin has made proposals for this, but the recent scandals could reduce the chance of implementation.
The German financial regulator Bafin warns that scandals and bank failures will reduce the chances of smaller banks getting less regulatory oversight. Bafin chief Mark Branson made the comments at an industry conference in Bonn, saying that irresponsible behavior by small banks will be noticed by European decision-makers. The Bafin, along with the Bundesbank and German government, is pushing for a "small bank regime" with lighter regulations on EU level.
Germany has over 900 small banks, mostly savings and cooperative banks, which currently have to comply with rules introduced after the 2008 financial crisis, mainly designed for large banks.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
