Friday, January 04, 2013
Is Germany curbing the flow of capital across its borders?
According to AFP, via Handelsblatt, the Commission and the EBA are looking into whether Germany's BaFin banking regulator is curbing the amount of money that can be transferred from bank subsidiaries in Germany to their foreign-based parent bank. Bafin reportedly wants to avoid a bank which falls under its oversight in Germany running into problems due to concerns about its parent company elsewhere.
Apparently it seems to be the Banca d'Italia that raised the issue within the EBA.
While this is all unverified as yet and the details are unclear, it would be a big deal if Germany was found to be placing restrictions on the movement of capital across the Single Market and to elsewhere in the eurozone. It also shows, yet again, how much resistance there will to a "full" EU Banking Union, in which one financial system underwrites another.