LONDON (Reuters) -The Bank of England said on Monday it was fining Standard Chartered 46.55 million pounds ($61.51 million) for misreporting its liquidity position to the regulator and for failings in its controls.
The Prudential Regulation Authority (PRA) said the fine related to reporting errors Standard Chartered made between March 2018 and May 2019 when it was subject to an “additional liquidity expectation” due to concerns about US dollar liquidity outflows.
The fine is the highest ever imposed by the PRA in a case where it was the sole enforcer, the watchdog said in a statement.
“We expect firms to notify us promptly of any material issues with their regulatory reporting, which Standard Chartered failed to do in this case,” said Sam Woods, the PRA’s chief executive.
“Standard Chartered’s systems, controls and oversight fell significantly below the standards we expect of a systemically important bank,” he added.
In October 2017, the PRA said it had imposed a temporary additional liquidity expectation on Standard Chartered due to concerns about a heightened risk of US dollar liquidity outflows.
While the British bank’s overall liquidity position remained in surplus to its core liquidity requirements, it made five errors reporting the liquidity metric between March 2018 and May 2019, the BoE said.
This meant the PRA did not have a reliable overview of its dollar liquidity position, it added.
Standard Chartered did not immediately respond to a request for comment.
($1 = 0.7568 pounds)
(Reporting by Abhinav Ramnarayan;Editing by Rachel Armstrong)
