German financial regulator BaFin and the country's deposit-insurance program are worried "too many" assets on Greensill Bank AG's books are linked to GFG Alliance Ltd. Executive Chairman Sanjeev Gupta, Bloomberg News reported, citing people familiar with the matter.

Swiss asset manager GAM Holding AG is said to have suspended its investment director, Tim Haywood, in 2018 in part due to insufficient due diligence on investments in unlisted notes tied to companies controlled by the British industrialist. Media reports surfaced that GAM was holding informal discussions with potential buyers to acquire all or part of its businesses as it sought stability following the suspension.

The watchdogs are reportedly working to determine the concentration of assets and may impose caps or additional capital requirements.

The Association of German Banks, which runs a voluntary deposit-insurance program for private-sector lenders, found reservations about risk concentration in Greensill Bank's portfolio. BaFin also views the Gupta-linked assets on the bank's balance sheet as an excessive concentration risk, according to the Aug. 19 report.

An August 2019 report by Scope Ratings said two-thirds of the bank's loans comprise debt sourced from a group of companies linked to Gupta. Since the publication of the report, the share of Gupta-linked loans has been reduced, Bloomberg reported.