Consequences of the trade conflicts
Bafin: Significant risk of further setbacks
The erratic US customs policy ensures a roller coaster ride on the stock exchanges. The financial supervision sees dangers to the financial industry – especially since the trade conflicts are not the only risk.
According to the financial regulator BaFin, the turbulence of the financial markets on the US customs policy is not over. “There is considerable potential for further setbacks in the markets. For setbacks that could possibly have system-wide effects,” said Bafin President Mark Branson in Frankfurt. The uncertainty is and remains “extremely high”.
It cannot be ruled out “that problems in the non -banking sector affect the banks just because we have survived the turbulence well so far,” warned Branson. Especially since the income from the interest business drops again and the risks increase that companies can slide into the bankruptcy and no longer be able to repay loans.
Do not overdo the rules for banks
Basically, BaFin currently sees the companies in the financial sector well positioned – also thanks to solid regulation. However, Branson again advocated the specifications for the industry.
From the perspective of BaFin, some guidelines of the European banking supervision EBA are “too granular” for small banks, for example the new ESG guidelines on the subject areas of the environment, social affairs and corporate management. Therefore, Bafin will not fully implement these guidelines in Germany. Branson emphasized: “We will not win the fight against climate change with reports from Kleinbanken.”
dpa
Source: Stern
