The European Commission is concerned that the German banking regulator BaFin may be hindering the free flow of capital in the European single market, reported the German business daily Handelsblatt.
The EC and the European Banking Authority (EBA) are analyzing BaFin’s request to banks, including branches of foreign lenders, to maintain sufficient liquidity levels for operations in Germany, Handelsblatt reported on Thursday.
The paper cites the words of a spokesperson for European Commissioner for Internal Market and Services Michel Barnier. The European Commission was not immediately available for comment.
In Brussels, there are fears that certain German branches of foreign banks are not allowed to transfer liquidity to their parent banks, writes the Düsseldorf business daily.
The central Italian bank Banco d’Italia has reportedly raised questions about BaFin along with the EBA, Handelsblatt reports, citing sources in supervisory bodies. The paper adds that BaFin’s regulations have reportedly been criticized by Italian UniCredit, which has a large branch HVB in Germany.
