PRA fines Standard Chartered Bank £46.5m over misreporting
09:59, 20 December 2021
The Bank of England’s watchdog, the Prudential Regulation Authority (PRA), has fined Standard Chartered Bank (SCB) £46.55m for misreporting its liquidity position and for failing to be open in its regulatory reporting governance.
This is the PRA’s highest fine to date in a PRA-only enforcement case.
Standard Chartered’s stock price had fallen by 1.5% to 425.40p by mid-morning.
The PRA said the fine related to five regulatory reporting errors made at the bank between March 2018 and May 2019.
The errors meant the PRA did not have a reliable overview of Standard Chartered Bank’s US dollar liquidity position.
Sam Woods, the PRA’s deputy governor for prudential regulation and its CEO, said: “We expect firms to notify us promptly of any material issues with their regulatory reporting, which Standard Chartered failed to do in this case.”
He added: “Standard Chartered’s systems, controls and oversight fell significantly below the standards we expect of a systemically important bank, and this is reflected in the size of the fine in this case.”
The PRA said that SCB’s internal controls and governance arrangements underpinning its regulatory reporting in relation to the liquidity metric were not implemented or operating effectively.
These issues contributed to SCB’s liquidity miscalculations and misreporting and also to the failure to be open and co-operative with the PRA.