* BaFin chief outlines 10 new medium-term goals
* Banks need to improve profitability, Branson says
FRANKFURT, Nov 15 (Reuters) - The new president of Germany's
financial watchdog BaFin said on Monday that the greatest risks
for the financial sector revolve around interest rates.
BaFin President Mark Branson, just months into the job, also
outlined 10 new medium-term goals for the supervisor, ranging
from promoting stability to preventing money laundering.
BaFin's reputation was battered last year after it failed to
spot wrongdoing ahead of the collapse last year of the German
payments company Wirecard, a former blue-chip hailed as a German
success story and once worth $28 billion.
That resulted in new leadership at BaFin with Branson at the
top, as well as new powers for the Bonn-based body.
Branson, speaking at a banking conference and in an in-house
BaFin publication, said that years of low interest rates can be
problematic for certain bank business models and for life
At the same time, the risk of bubbles forming is increasing
in various markets, he said in the in-house publication, BaFin
"If rates rise abruptly, it will be turbulent," he said at
Branson said that banks need to work on improving
profitability, which can be the first line of defense in
(Reporting by Tom Sims and Frank Siebelt
Editing by Riham Alkousaa and Nick Zieminski)