BaFin extends oversight of N26 after Wirecard downfall – Reuters

Germany's Federal Financial Supervisory Authority, or BaFin, is extending its oversight to the entirety of N26 GmbH instead of just supervising its banking arm N26 Bank GmbH, Reuters reported, citing two people with knowledge of the matter.

The oversight extension is spurred by the downfall of payments company Wirecard AG, where the regulator was criticized for its supervision. BaFin supervised the company's banking unit, Wirecard Bank AG, rather than the whole company as it was not designated as a financial holding company from a prudential perspective.

The extension of oversight is a precaution and there are no signs of wrongdoing at N26, according to the Jan. 26 report.

The regulator has reportedly increased oversight of several companies, including N26, in the aftermath of the Wirecard scandal.

BaFin and N26 refused to comment on the matter, but the company said its dialogue with regulators was always close and cooperative, the newswire reported.