N26—BaFin imposed new restrictions including mortgage ban and special monitor for serious deficiencies
Germany's BaFin imposed new restrictions on N26 in December 2025 after a 2024 special audit found serious deficiencies in risk management, complaint handling, and lending. Restrictions include a ban on new mortgages in the Netherlands, higher capital requirements, and a second special monitor appointment since 2021. The company's funding process was suspended.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Consumer Protection | -against | secondary | -0.50 |
| Corporate Governance | -against | primary | -1.00 |
| Overall incident score = | -0.372 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.66)× agency (negligent ×0.5)
Evidence (2 signals)
BaFin imposed new restrictions including mortgage ban and special monitor for serious deficiencies
Germany's BaFin imposed new restrictions on N26 in December 2025 after a 2024 special audit found serious deficiencies in risk management, complaint handling, and lending. Restrictions include a ban on new mortgages in the Netherlands, higher capital requirements, and a second special monitor appointment since 2021. The company's funding process was suspended.
BaFin banned N26 from Netherlands mortgage lending and appointed second monitor
Banking Dive reported December 2025 that BaFin prohibited N26 from lending mortgages in Netherlands after finding bank 'lacked proper business organization.' Special audit identified 'serious deficiencies in risk and complaint management and in the organization of the lending business.' BaFin appointed second special monitor to track progress, imposed additional capital requirements and business restrictions. Latest escalation in ongoing regulatory scrutiny.