StanChart fined $61.5 mln for misreporting

Standard Chartered was fined around $61 million on Monday (December 20) by the Bank of England.

Regulators said the decision was due to the British lender misreporting its liquidity position and for failings in its controls.

The UK's Prudential Regulation Authority - or PRA - said the fine related to when the regulator was concerned from late 2017 about a 'heightened risk' of U.S. dollar outflows from Standard Chartered.

At that stage, it had placed additional liquidity requirements on the bank.

The fine is the highest ever imposed by the PRA in a case where it was the sole enforcer.

It said Standard Chartered made five errors reporting its liquidity metric between March 2018 and May 2019.

In one case, Standard Chartered over reported its 'U.S. dollar Gap 2 Metric' by almost $8 billion.

The PRA also said one mistake arose because a cell in a spreadsheet used for liquidity reporting had a positive value when a zero or negative value was expected.

It meant the regulator did not have a reliable overview of the lender's liquidity.

Authorities monitor a bank's liquidity position to ensure they have enough cash or cash-like assets if it faces a sudden large number of withdrawal requests.

Standard Chartered said it accepted the PRA's findings and had made significant improvements in its reporting processes.

The PRA added Standard Chartered's overall liquidity position was above its core requirement throughout the period.

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