Bafin President: Two dozen banks in particular focus
According to the financial supervisory authority Bafin, there are currently more than 20 problem banks in the German banking market. His authority currently has "around two dozen institutions in particular focus" that are problematic or could become problematic, said the President of the Federal Financial Supervisory Authority (Bafin), Mark Branson.
Bafin sees a need for some financial institutions to catch up in the fight against money laundering. According to the supervisory authority, several companies had or have "serious deficits" in this area. Bafin has sent a special representative to six institutions to deal with this issue.
According to Branson, financial institutions will have to prepare for setbacks in commercial real estate: "This will be a market that will remain under pressure for a very long time, which will result in losses for banks." The residential real estate market, on the other hand, does not worry him "if there is not a deep recession with high unemployment", said the Bafin president.
Bafin is closely monitoring around two dozen banks that might pose issues in financial supervision. These banks might be struggling with money laundering, as acknowledged by Bafin, which has identified serious deficiencies in this area for several institutions. The German banking market is home to more than 20 problem banks as per Bafin's data.
Source: www.dpa.com
