Erscheinung:04.12.2023 | Topic Measures BaFin orders S-Kreditpartner GmbH to hold additional own funds
The German Federal Financial Supervisory Authority (BaFin) has issued an order requiring S-Kreditpartner GmbH to hold additional own funds. A special inspection concluded that the business organisation of the institution could not be deemed proper in all areas inspected. BaFin identified deficiencies mainly in the area of outsourcing management.
The measure has been final and binding since 11 November 2023.
Proper business organisation
The purpose of a proper business organisation is to ensure that credit institutions comply with the legal provisions and meet business and operational requirements. Section 25a (1) of the German Banking Act (Kreditwesengesetz – KWG) stipulates how this is to be done.
Should BaFin conclude that an institution’s business organisation has deficiencies, the supervisors can take action on the basis of section 25a (2) sentence 2 of the KWG. BaFin can, for example, issue an order requiring the institution concerned to have own funds available in addition to those required by law. BaFin has issued such an order to S-Kreditpartner GmbH.
Announcement
S-Kreditpartner GmbH: BaFin issues order requiring additional own funds.
On 9 October 2023, BaFin issued an order to S-Kreditpartner GmbH in accordance with section 10 (3) sentence 1 in conjunction with sentence 2 no. 2 of the KWG requiring it to hold additional own funds.
The institution had violated the requirements for proper business organisation within the meaning of section 25a (1) of the KWG. A special inspection concluded that the business organisation within the meaning of section 25a (1) of the KWG could not be deemed proper in all inspected areas at S-Kreditpartner GmbH. The findings mostly related to outsourcing management.
The measure has been final and binding since 11 November 2023. Publication of this order is based on section 60b of the KWG.
