Germany's financial regulator BaFin has today announced a series of measures in its oversight of the online bank N26, including limits on new business in the Netherlands and the instalment of a special monitor.
It marks the second time since 2021 that BaFin has ordered a special monitor to oversee the bank.
The lender, one of Europe's most valuable financial startups, has seen tumultuous times in recent months, with an array of management and supervisory board changes.
N26 said that it was "in close and constructive communication with the supervisory authorities as well as the appointed special representative".
Among the orders announced today, BaFin is prohibiting N26 from offering new mortgages in the Netherlands.
BaFin said that a special audit in 2024 revealed issues.
"There were serious deficiencies, particularly in risk and complaint management and in the organization of the lending business. The institution thus violated the provisions of the German Banking Act," BaFin said.
