They were absolutely not properly regulated by BaFin. For starters the bank released false accounts to the public - as Wirecard Bank is 100% owned by Wirecard

They were absolutely not properly regulated by BaFin. For starters the bank released false accounts to the public - as Wirecard Bank is 100% owned by Wirecard it's accounts aren't broken down from the (fraudulent) Wirecard accounts under the rules for consolidated subsidiaries. I think this is a big problem for a regulated financial institution. Secondly, Marcus Braun (Wirecard Chief Exec) managed to take an unauthorised director's loan from Wirecard Bank equivalent to 1/5 of the banks equity capital. He eventually relented and repaid the money but not BaFin does not seem to have gotten involved. Surely this should have at least rung alarm bells!! Apparently not, BaFin continued to sleep on the matter. Finally, Wirecard bank has now collapsed in a disorderly fashion with depositors unable to access their deposits for a period, foreign regulators freezing funds to defend depositors, etc. Wirecard Bank is a very small bank. If BaFin is fluffing it up this badly on the easy cases, what is going to happen when a big bank goes bust? There were rumours in 2017 that Deutsche was going to go insolvent - how much confidence to you have that BaFin would manage that process well? Or would we find also that 50% of their balance sheet does not exist?