Dhe banking supervision Bafin has imposed a moratorium on the Mainz-based North Channel Bank due to the threat of over-indebtedness. It includes a ban on sale and payment. The bank is also no longer allowed to accept payments that are not used to repay debt, Bafin announced on Thursday afternoon.
“The moratorium had to be ordered to secure the assets through an orderly process,” the supervisors wrote. “The bank is chronically in deficit and no longer has a sustainable business model.” With a balance sheet total of 173 million euros, it is not systemically important and does not threaten financial stability. According to Bafin, she was heavily involved in cum-ex deals from 2012 to 2015.
According to Bafin, the Danish and Belgian tax authorities are demanding 176 million euros in damages in this context, which the bank cannot pay. If the Bafin finds that the bank can no longer pay out the deposits of its customers, these are legally protected up to 100,000 euros, said the Association of German Banks. In addition, his deposit protection fund guarantees up to around 3.3 million euros per customer.