Erscheinung:03.03.2021 | Topic Consumer protection Press release | 3 March 2021
BaFin orders moratorium on Greensill Bank AG
The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has issued a ban today for Greensill Bank AG on disposals and payments as there is an imminent risk that the bank will become over-indebted. In addition, BaFin has ordered that the bank be closed for business with customers and prohibited it from accepting payments that are not intended for repaying debt to Greensill Bank AG (“moratorium”). BaFin’s measures are immediately enforceable but not yet final.
The moratorium had to be ordered to secure the assets in an orderly procedure. Greensill Bank AG is not systemically important. For this reason, the institution’s distress poses no threat to financial stability. The total assets of the institution based in Bremen amounted to approximately 4.5 billion euros as at 31 December 2020.
Greensill Bank AG describes itself as a refinancing institution for the Greensill Group and an investor in working capital solutions products developed by its British sister company Greensill Capital (UK) Ltd.. The Greensill Group primarily acts as a global provider of short-term supply chain financing solutions for industrial companies. The Australian company Greensill Capital Pty Ltd. is the parent company of Greensill Bank AG. Greensill Bank AG is directly supervised by BaFin.
During a special forensic audit, BaFin found that Greensill Bank AG was unable to provide evidence of the existence of receivables in its balance sheet that it had purchased from the GFG Alliance Group. For this reason, BaFin has already taken extensive measures to secure the bank’s liquidity and to limit risks for Greensill Bank AG and has appointed a special representative for the bank.
The deposits of Greensill Bank AG’s customers are protected under the German Deposit Guarantee Act (Einlagensicherungsgesetz – EinSiG). The institution is a member of the Compensation Scheme of German Banks (Entschädigungseinrichtung deutscher Banken GmbH – EdB). The statutory conditions for compensation of up to 100,000 euros per depositor are deemed met when BaFin has determined the compensation event, i.e. ascertained that compensation is payable. The EdB must notify the institution’s creditors without delay about the occurrence of the compensation event.
Notice:Contact for Investors
For questions about deposit protection and investor compensation, please contact BaFin's consumer helpline or refer to the questions and answers on the moratorium.
Contact person for journalists:
Contact:Oliver Struck
Head of Press and Public Relations
Phone: +49 (0) 228 4108-2410
E-mail: oliver.struck@bafin.de
