German Finance Ministry grants financial watchdog more independence

The logo of Germany’s Federal Financial Supervisory Authority BaFin (Bundesanstalt fuer Finanzdienstleistungsaufsicht) is pictured outside a BaFin office building in Bonn, Germany April 15, 2019. REUTERS/Wolfgang Rattay

Join now for FREE unlimited access to Reuters.com

Register

BERLIN, May 17 (Reuters) – Germany’s BaFin will be given more leeway and independence in conducting its financial oversight work in the country, the finance ministry said on Tuesday.

BaFin’s reputation has been hit after it failed to spot wrongdoing ahead of the 2020 collapse of German payments firm Wirecard, a former blue-chip hailed as a German success story and worth $28 billion. dollars. Read more

Some financial experts had said that as part of the Ministry of Finance, BaFin could be overly influenced by politicians if supervisory efforts clashed with their objectives, adding that BaFin needed more independence from vis-à-vis Berlin to restore its credibility.

Join now for FREE unlimited access to Reuters.com

Register

According to the new principles of cooperation between the two authorities presented on Tuesday, the BaFin should only inform the ministry in critical cases, for example when a large company is involved or if there is an impact on the stability of the financial markets.

BaFin Chairman Mark Branson said the new principles establish a contemporary, risk-based framework for the authority.

“As financial controllers, we must be able to act with boldness, clarity, speed and accountability,” he said.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Riham Alkousaa; Editing by Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.