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BaFin orders insurers to disclose bank holdings

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BaFin orders insurers to disclose bank holdings
Photo: DPA
15:30 CEST+02:00
The German financial watchdog BaFin has ordered insurers to disclose the exact amount of their financial investments with banks by next month, the Financial Times Deutschland reported Monday.

Amid concern Europe's simmering sovereign debt crisis could hit the insurance industry, the BaFin has ordered insurers to quantify and specify all forms of capital investment with financial institutions and specify whether they hold covered or uncovered bonds, the newspaper said.

A similar survey was conducted in the spring when BaFin found the ten largest insurers have up to 55 percent of their financial investments with banks, it added.

"There's a risk of contagion," Finance Ministry official Rolf Wenzel told the FTD, referring to the exposure of German banks to European debt.

But a BaFin spokesman said the measure was a regular survey without specific impetus from the financial crisis. "We do this at regular intervals and without a concrete reason," he said.

FTD said companies in the sector were concerned BaFin could pressure insurers to scale back their investments with banks so as to reduce the risk of contagion.

AFP/DPA/The Local/mry

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