Deutsche Bank has been reprimanded by German watchdog Bafin for faulty operations and disruption of services in its Postbank unit.
Postbank was acquired by Deutsche Bank in 2008 and has been struggling with integration ever since. Despite announcing in July that the incorporation of the unit has been completed, two weeks ago BaFin announced that the unit was experiencing disturbances.
BaFin chief Mark Branson called the disruptions “unacceptable and extraordinary”, pointing out the bank’s inadequacy. He continued: “I would even say it's an unprecedented situation when we look at how many complaints there are about a single institution."
The regulator stated that it would “take relevant supervisory measures if appropriate”.
Deutsche Bank has apologised to Postbank customers for the disturbances. CEO Christan Sewing responded to customer disappointment, saying that the bank has committed “clear mistakes” and the situation is “anything but good, anything but nice”.
He added: "We have not lived up to our responsibility here – and now we have to work all the harder to fix the problems quickly and completely - and regain trust."
Sewing assured users that 400-500 employees are now dedicated to fixing the issue and the problem is being thoroughly examined.
Deutsche Bank has been subject to disapproval recently, with chief executive resigning in disgrace due to a greenwashing scandal in 2022, and being fined $186 million for AML failures by the Federal Reserve earlier this year.