The European Central Bank (ECB) imposes penalties on Bank of Cyprus and Luxembourg's Banque et Caisse d’Epargne de l’Etat, in addition to updating the plausibility checks for AnaCredit reporting.
Below are the key details of these recently published updates:
- The updated AnaCredit document from ECB sets out the plausibility checks performed on AnaCredit datasets. The plausibility checks are intended to ensure that AnaCredit data are of sufficient quality to serve the purposes for which the data have been collected. The document describes plausibility checks, discusses their features, and presents their various different categories, in addition to setting out the external plausibility checks in detail.
- ECB imposed penalty of EUR 3.755 million on Banque et Caisse d’Epargne de l’Etat, Luxembourg, after the bank miscalculated and misreported its risk-weighted assets for exposures to banks for seven consecutive quarters in 2017 and 2018. The bank did not calculate its capital needs properly and reported a higher Common Equity Tier 1 (CET1) ratio than it should have done. Due to significant deficiencies in its internal control framework on internal models, the bank was unable to detect an inaccurate calibration of the probability of default model for exposures to other banks. The bank may challenge the ECB decisions before the Court of Justice of the European Union.
- Additionally, ECB imposed an administrative penalty of €575,000 on the Bank of Cyprus for transferring liquidity to subsidiaries, without approval from the supervisor. From September 2016 to December 2017, the bank intentionally carried out numerous transfers to its subsidiaries, despite having the evident knowledge of this requirement and after the bank had correctly sought ECB approval on several other occasions during the same period, thus accepting that it would result in a breach. This prevented ECB from properly assessing the bank’s prudential situation during that period and is, therefore, classed as a high degree of misconduct. The bank may challenge the ECB decisions before the Court of Justice of the European Union.
- AnaCredit Plausibility Checks (PDF)
- AnaCredit Homepage
- Press Release on Luxembourgian Bank
- Press Release on Bank of Cyprus
- Details of Supervisory Sanctions
Keywords: Europe, Banking, Reporting, Basel, Regulatory Capital, AnaCredit, Plausibility Checks, Luxembourg, Bank of Cyprus, Misconduct Risk, Supervisory Penalties, Liquidity Risk, Compliance Risk, ECB
Previous ArticleOCC Updates Licensing Booklets and Large Bank Supervision Booklet
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.