ECB Imposes Penalty on Piraeus Bank for Breaching Own Funds Provisions
ECB imposed an administrative penalty worth EUR 5,150,000 on Piraeus Bank S.A. The penalty has been imposed in respect of the breaches of the own funds provisions laid down in Article 28(1)(b) of the Capital Requirements Regulation (CRR: EU Regulation No 575/2013) in conjunction with Article 8(2) and Article 9(1)(c) of the Commission Delegated Regulation (EU) No 241/2014.
Breach has been committed under the direction of the former management of Piraeus Bank S.A. by classifying capital instruments whose purchase was directly or indirectly funded by the Supervised Entity as common equity tier (CET) 1 instruments during six consecutive quarterly reporting periods between 2015 and 2017, both at the individual and consolidated levels. Among other funding actions, Piraeus Bank S.A. released collateral that it had, to secure the repayment of loans granted to certain non-performing obligors who used the funds obtained with the released collateral to purchase shares of Piraeus Bank S.A.
Related Link: Press Release
Keywords: Europe, EU, Banking, Own Funds, CRR, CET 1, Penalty, Piraeus, ECB
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