Bafin calls for better risk management

Daily news headlines

German banks lack expertise, risk management and money, says regulator

FRANKFURT – German financial regulator Bafin has called for banks to exercise better risk management in the wake of the credit crisis.

The German federal watchdog said German banks’ risk management had been caught unprepared for the complex global risks highlighted by the crisis.

“Banks need to set up their risk management systems in such a way that they can tell in time when extreme situations are approaching, and to remain able to act once they have arrived,” said Bafin president Jochen Sanio. “Expertise, risk management and money, that is what the German banks that plunged into the subprime adventure lack.”

Last year, German banks IKB and Sachsen LB were badly hit by the liquidity crisis and required billions of euros in bailouts.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here