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“Financial supervision needs more bite,” said Finance Minister Olaf Scholz (SPD) in a statement sent by his ministry on the planned reform. “The corresponding project for realigning Bafin with a broad approach is currently underway.”
As the Manager-Magazin reports, the Ministry of Finance wants to equip the authorities with additional instruments and resources and give the president’s voice more weight in the six-person management committee. Although Hufeld is the head of the authority, he does not have full authority on factual issues. So far, for example, decisions about the Bafin budget have to be passed unanimously.
Such inefficient processes would have to be eliminated, quoted the magazine from circles familiar with the reform plans. The authority should also get two more departments. A new unit is to be created within banking supervision, which will specifically take care of young institutions such as N26. At the same time, a kind of emergency force is to be created within the Bafin, for example to carry out quick inspections on site at a bank.
The Ministry of Finance confirmed that it was working on a reorganization of the Bafin. “Above all, the BaFin’s rights to intervene in investor and consumer protection and balance sheet control should be strengthened. To this end, it will be examined how the processes and staffing of BaFin should be improved.” This includes examining the establishment of a rapid reaction force. ” investigates how information from whistleblowers can be used more effectively and how incentives for whistleblowers can be improved.
“We cannot now put the reforms on the back burner,” stressed Scholz. Effective means would have to be found quickly to prevent balance sheet manipulation like at Wirecard in the future. The action plan launched by the government therefore also provides for stricter rules for auditors and auditors. In addition to external expertise, consumer protection organizations, Transparency International and the citizens’ movement Finanzwende would also be closely involved, “so that together we can restart financial supervision”.
BERLIN (Dow Jones)
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