New Ruling on Cross-border Banking Business confirms BaFin’s strict administrative practice
17 July 2009
Mayer Brown Legal Update
With its decision of April 22, 2009 (executed on July 9, 2009), the German Federal Administrative Court (Bundesverwaltungericht, “BVerwG”) has confirmed the existing administrative practice of the German Federal Financial Supervisory Authority (Bundesaufsicht für Finanzdienstleistungen, “BaFin”) regarding cross-border banking business (BVerwG 8 C 2.09). Thus, companies which still intend to operate without a banking licence within Germany, have to carefully contemplate in future which activities they pursue.