“More than just a few imbalances”: Bafin President Mark Branson takes a critical look at the German banking sector, where more than 20 institutions are under special observation.
According to the financial regulator Bafin, there are currently more than 20 problem banks in the German banking market. His authority is currently “focusing on around two dozen institutions” that are or could become problematic, said the President of the Federal Financial Supervisory Authority (Bafin), Mark Branson.
Bafin sees some catching up to do in the fight against money laundering at some financial institutions. According to the supervisory authority, several companies there had or have “serious deficits”. Bafin has sent a special representative to six institutes on this topic.
In Branson’s opinion, financial institutions 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, “doesn’t worry him much unless there is a deep recession with high unemployment,” said the Bafin president.
Source: Stern
