BaFin has been leading what’s arguably Europe’s biggest clampdown on mostly digital startup banks as well as on payment firms. The actions taken by the watchdog have likely compounded deep valuation declines across the industry as borrowing costs rise.
“We are seeing progress at individual firms, but not all,” BaFin Executive Director Birgit Rodolphe said in an interview from her Frankfurt office on Tuesday. “There will definitely be cases where we loosen restrictions this year.”