BaFin bans Greensill Bank on disposals and payments

Thursday 4 March 2021 13:29 CET | News

The Federal Financial Supervisory Authority (BaFin) has issued a ban for Greensill Bank on disposals and payments as there is a risk that the bank will become over-indebted. 

In addition, BaFin has ordered the bank to be closed for business with customers and prohibited it from accepting payments that are not intended for repaying debt to Greensill Bank. BaFin’s measures are immediately enforceable but not yet final.

The moratorium had to be ordered to secure the assets in an orderly procedure. During a forensic audit, BaFin found that Greensill Bank was unable to provide evidence of the existence of receivables in its balance sheet that it had purchased from the GFG Alliance Group. For this reason, BaFin has taken measures to secure the bank’s liquidity, to limit risks for Greensill Bank, and has appointed a representative for the bank.

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Keywords: banks
Categories: Banking & Fintech | Payments General
Countries: Germany
This article is part of category

Banking & Fintech