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Germany Said to Let Banks Fleeing Brexit Keep Risk Models

  • Banks could keep risk-weights for up to two years, people say
  • Bafin met with about 50 foreign bank representatives on Brexit
Berlin, Germany
Photographer: Krisztian Bocsi/Bloomberg
Updated on

Germany’s financial regulator offered to allow most banks that move operations there because of Brexit to keep current models for setting capital requirements for as long as two years, people with knowledge of the matter said.

BaFin told banks at a meeting Monday that it would still vet each case individually and expect lenders to shift all business to risk models approved by the regulator after the transition period, according to two people, who asked not to be identified because the matter is private. All new loans would have to be risk-weighted under BaFin-approved models straight away, they said.