the BaFin chief warns of the Proposed referendum on United Kingdom membership of the European Union-consequences for banks (Photo: AP)
Frankfurt Germany top banking supervisors Felix Hufeld warns of the consequences of an EU exit from the UK for the German financial institutions. Should the British on June 23, vote for the Proposed referendum on United Kingdom membership of the European Union, which is mainly for the big banks is a problem, the head of the Financial Supervisory Authority told the “Tagesspiegel” (Monday edition). “The largest institutions would get the biggest problems. You have the most trading activity with or in London. “
Hufeld goes with the German institutes harshly. Although had improved risk management since the financial crisis much. unfortunately “This does not comprehensively for the way how banks do business. Manipulation of standards, unacceptable sales practices, tax evasion or money laundering – here is still something amiss, “criticized the head of the authority. In connection with the formation of shell companies in Panama Bafin checked according Hufelds currently eleven institutes intense. Until the documents are evaluated, will “take some time” to pass.
rethinking would many banks are still in their business models, called Hufeld. “Banks are still living to 80 percent of savings. This is fatal when cooled the economy. “In addition, the financial institutions have to ask,” if they really have to offer everything for every customer. “Leaned
Too rapid introduction of a European deposit guarantee Hufeld from. “In the medium to long term you can think about, but at the moment there is a lack of the necessary requirements. At present, the whole thing would be built on sand. “In this week to meet European finance ministers to discuss about this topic. “We can not build a construct that captures the error of false economic policy on deposit insurance and socialized in the EU. Something you could convey in Germany anyone, “warned Hufeld.
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