The Strategist

Citigroup gets record fine from Bank of England


11/27/2019 - 07:39



Citigroup Inc. was fined £ 44 million ($ 57 million) by the Bank of England. This is a record amount for the British Central Bank. The bank is charged with "serious errors" in reporting capital and liquidity ratios from June 2014 to December 2018.



Matt Buck via flickr
Matt Buck via flickr
The Bank of England Prudential Regulatory Authority (PRA) identified significant weaknesses in the systems used by three UK Citigroup units to report to regulators, as well as internal governance problems.

The regulator noted that the financial statements of the bank’s British departments were often prepared manually, sometimes by a single person located in Budapest. PRA also had questions about quality of the data used in reporting and the systems of banks that erred in closing some market positions.

The errors in the reporting made it "an unreliable source for the regulator to draw up a clear picture regarding the capital and liquidity of Citigroup," according to the PRA.

Despite large-scale problems with the quality of reporting, the bank had no problems with capital or liquidity, the regulator said in a statement.

Citigroup collaborated with PRA, so the amount of the fine assigned to him was reduced by 30% from the originally estimated 63 million pound sterling.

source: theguardian.com




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