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BaFin Tightens Grip on N26 With Binding Orders and Dutch Mortgage Ban

Citing 2024 reviews, the regulator said N26 lacked a legally compliant business organization.

Overview

  • Germany’s financial supervisor reported that a 2024 special audit and the 2024 annual-account review uncovered serious deficiencies in risk management, complaints handling, and the organization of the credit business.
  • A special commissioner has been appointed to monitor N26’s remediation and report back to the authority.
  • BaFin raised N26’s own-funds requirements and barred the bank from originating new mortgages in the Netherlands and from securitizing those related claims.
  • The measures are legally effective as of 10 and 13 December 2025, marking an escalation following earlier enforcement such as fines and growth limits.
  • N26 said it is cooperating with supervisors and advancing governance, process, and control reforms begun in early 2025; the bank operates in 24 countries with about 4.8 million revenue-relevant customers at end-2024.