StanChart Fined $61.5 Million For Misreporting Liquidity Position
Industry News
The Prudential Regulation Authority (PRA), which is part of the Bank of England, fined Standard Chartered $61.51 million on Monday for misreporting its liquidity position to the regulator and deficiencies in its procedures.
Standard Chartered made five inaccuracies reporting its liquidity ratio between March 2018 and May 2019, according to the PRA, leaving the regulator without an accurate picture of the bank’s liquidity situation.
Banks’ liquidity holdings are monitored by regulators to ensure they have adequate cash or cash-like assets in the event of a significant number of withdrawal requests.
PRA chief executive Sam Woods stated, “We expect businesses to tell us immediately of any substantial concerns with their regulatory reporting, which Standard Chartered failed to do in this case.”
The PRA’s allegations were accepted by Standard Chartered.
“These mistakes had no impact on Standard Chartered’s overall liquidity position, which remained in surplus throughout the time,” the bank added.
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