Deutsche Bank is facing criticism from the German financial regulator, Bafin, over deficiencies in its subsidiary, DSL Bank, which is causing significant issues for customers seeking construction financing.
The problems at DSL Bank are attributed to a major IT system change at Deutsche Bank, which has led to delays in processing payment requests for real estate financing. This has caused some customers to not receive the funds they need for property development or payments to craftsmen, leading to delays in construction projects.
Bafin has issued a sharp reprimand to Deutsche Bank over these issues and has warned of potential consequences if the situation does not improve. These consequences could include sanctions, such as restrictions on DSL Bank’s business operations or the appointment of a special representative to oversee the resolution of the deficiencies.
The problems at DSL Bank are similar to issues experienced by Deutsche Bank’s subsidiary, Postbank, which has also faced IT-related problems causing disruptions for customers.
DSL Bank
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Deutsche Bank has stated that it is working to resolve the problems at DSL Bank and is increasing the capacity of processing teams to shorten processing times. The bank expects processing times to return to normal by the end of the year.
Customers affected by these delays have expressed frustration and concern over the impact on their construction projects and property transactions. Some have faced difficulties in accessing the necessary funds or authorization to complete property transactions, potentially jeopardizing home purchases.
While Deutsche Bank is taking steps to address these issues, Bafin’s scrutiny and potential sanctions highlight the seriousness of the situation and the need for prompt resolution to minimize further disruptions for customers.
Source: Handelsblatt