Central Bank Tightens Rules Ahead of Holiday Spending Surge
The central bank has issued new guidelines to ensure financial stability during the upcoming holiday season. Credit institutions must now take stronger measures to prevent fraud, manage risks, and meet rising demand for cash and payment services.
The directives also address lending priorities, security protocols, and customer service improvements as transaction volumes are expected to surge.
Banks have been instructed to monitor and forecast cash needs more closely. With holiday spending set to increase, institutions must prepare capital sources to avoid shortages. Plans for mobilising and balancing funds should be developed in advance to handle the expected rise in transactions.
Security has become a major focus. Banks must secure vaults against theft, following advice from the Ministry of Public Security. ATM operations will also face stricter oversight to prevent disruptions in cash withdrawals and payments.
Fraud prevention is another key requirement. Institutions must warn customers about emerging scams on transaction apps and improve how they handle enquiries and complaints. Procedures for addressing customer concerns will be reviewed and updated to reduce delays.
Lending policies are being adjusted as well. Banks should prioritise loans for production, business, and essential economic sectors. High-risk industries will face tighter controls to limit financial exposure. Earlier reports from Germany showed a near 20% rise in real estate lending in 2025, highlighting the need for stricter oversight before the Bundesbank's March 2026 interest rate review and BaFin's April 1 regulations.
Risk management systems must also be strengthened. Banks are required to detect and respond to violations in cash payment activities more effectively. The goal is to minimise financial losses and maintain trust in payment services.
The central bank's measures aim to prevent service disruptions and financial crime during peak demand. Banks will need to enforce stricter security, improve customer communication, and ensure sufficient liquidity. Compliance with these rules will be closely monitored in the coming months.
