According to a report, the ECB is reviewing the banks that work with the Signa Group. The group includes Galeria. picture alliance / SvenSimon | Frank Hoermann/SVEN SIMON
According to information from the “FAZ”, the ECB is examining all banks that do business with the Signa holding company of real estate entrepreneur René Benko. The holding company includes the department store chain Galeria.
It is therefore probably the first time that banks are checked for a single borrower.
The objective of this review, according to the report, is to ensure that banks comply with applicable lending standards.
The ECB examines according to information from the “FAZ” European banks to the holding of the real estate entrepreneur René Benko. Two-thirds of Signa Holding is owned by the Benko Family Foundation. It in turn includes three companies, including the department store chain Galeria Karstadt Kaufhof.
According to the “FAZ” report, it is an on-site inspection. It is unusual for bank supervisors to check European banks for just one borrower. According to an industry insider, nothing like this has ever happened before.
The ECB did not comment on the process when asked by the “FAZ”. According to the newspaper, the ECB is reviewing all banks that have business relationships with Signa Holding. These include state banks, special real estate banks and German and Austrian financial institutions.
The aim is therefore to check whether the banks have complied with the applicable lending standards. In addition, as the “FAZ” writes, the supervisors question loan collateral and check whether the companies in the Signa Group have paid their interest.
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