Finance
German financial watchdog finds non-compliance at local Standard Chartered unit
Published by Global Banking and Finance Review
Posted on December 16, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 16, 2025
1 min readLast updated: January 20, 2026
BaFin orders Standard Chartered's German unit to fix compliance issues and increase capital after an audit revealed deficiencies in loan processes and risk capacity.
FRANKFURT, Dec 16 (Reuters) - Germany's financial market regulator BaFin said on Tuesday that it was ordering the German unit of Standard Chartered to fix organisational deficiencies and hold more capital following an audit earlier this year.
"Business organisation was not compliant in some of the areas audited. This affected the processes for granting loans and determining risk-bearing capacity," BaFin said.
The bank said in a statement that it took the matter seriously and was cooperating with BaFin.
"We ... have already implemented corrective actions to ensure we fulfil all aspects of the remediation within the timeframe set by the regulator," it said.
(Reporting by Tom Sims, editing by Thomas Seythal and Miranda Murray)
Compliance refers to the process of adhering to laws, regulations, and guidelines set by governing bodies to ensure that organizations operate within legal frameworks.
An audit is an official inspection of an organization's accounts, typically conducted by an independent body, to ensure accuracy and compliance with established standards.
Capital requirements are regulations that determine the minimum amount of capital a bank must hold to ensure its stability and ability to absorb losses.
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