Bundesbank wants to test risky banks more frequently

2023-08-09 14:06:39

Frankfurt The Bundesbank is changing its strategy in banking supervision: In the future, the central bank wants to align its control intensity more closely with how risky a bank is. “We want to direct more human resources to where the greatest risks are,” said Karlheinz Walch, Head of Banking Supervision and Financial Stability, in an interview with the Handelsblatt.

At a Bundesbank conference in July, the Bundesbanker emphasized that the central bank has so far also provided for a comprehensive supervisory program for small and low-risk institutions. As a result, it consumes “a whole lot of resources that we lack at the institutes where we see the major risks”.

The supervisory strategy of the Bundesbank is relevant for the majority of German institutions: The central bank monitors the approximately 1,250 small and medium-sized savings banks and banks together with the financial supervisory authority Bafin. The central bank analyzes the information that institutions report to it and carries out special audits. The Bundesbank reports are an important source of information for Bafin. Only the Bafin can then impose measures and sanctions.

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