Greensill Bank headquarters in Bremen: Bafin has issued a ban on sale and payment due to the threat of over-indebtedness
Photo: FABIAN BIMMER / REUTERS
The financial supervisory authority Bafin closes the Bremen Greensill Bank, which has got into turmoil.
The subsidiary of the British-Australian financial conglomerate Greensill will be closed to customers with immediate effect, said the financial regulator.
The moratorium is intended to secure assets.
A sale and payment ban was issued due to the threat of over-indebtedness.
At the same time, the supervision filed a criminal complaint against the institute, as a spokesman for the Bremen public prosecutor said on request.
Neither he nor the Bafin gave details.
According to the Bafin, Greensill Bank AG has no systemic relevance.
Their plight therefore does not pose a threat to financial stability. The total assets of the Bremen-based institute at the end of 2020 were around 4.5 billion euros.
The Bafin had already appointed a special representative at the bank.
Bremer Greensill Bank AG emerged from Nordfinanz Bank.
In addition to financing for companies, the institute also offers overnight and fixed-term deposits, attracting visitors with unusually high interest rates.
Founded in 2011 by ex-banker Lex Greensill, the company plays an important role in supply chain financing.
This involves a short-term cash advance that gives companies time to pay suppliers.
Greensill Capital pays a supplier the bill faster than the client could - and receives a discount in return.
According to Bafin, Greensill Bank AG sees itself as a refinancer for the group.
Greensill bundled the claims in bond-like securities and sold them to investors.
However, according to media reports, investors recently had doubts about what was putting the financial group under pressure.
Greensill Capital is based in London, the parent company Greensill Capital in Australia.
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hej / dpa