Aggregated News From Investment Management Regulators

ECB sanctions Allied Irish Banks plc and EBS dac for miscalculating capital needs

Report/Flag

Please complete the required fields.



The European Central Bank (ECB) has imposed administrative penalties of €420,000 on Allied Irish Banks plc and €195,000 on its subsidiary EBS dac after the banks miscalculated their risk-weighted assets for intragroup equity exposures.

During nine and seven quarters respectively, Allied Irish Banks plc and EBS dac reported lower risk-weighted assets for intragroup equity exposures than they should have. Risk-weighted assets are a measure of the risks a bank has on its books. They serve as a basis for banks to calculate their capital needs. Underestimating risk-weighted assets means the banks did not calculate their capital needs properly and reported a higher Common Equity Tier 1 (CET1) ratio than they should have. The CET1 ratio is a key indicator of a bank’s capital strength and its ability to absorb losses.

The breaches occurred between 2014 and 2016 and related to intragroup equity exposures only. Therefore, the breaches affected the CET1 ratio at individual, or solo, level only and had no impact on the CET1 ratio at consolidated level.

When deciding on the amount of a penalty to sanction a bank, the ECB applies its Guide to the method of setting administrative pecuniary penalties. In this case, the ECB classified the breaches as moderately severe. More details on sanctions imposed by the ECB are available on the ECB’s banking supervision website.

The banks may challenge the ECB’s decision before the Court of Justice of the European Union.

This news item was originally published by the Malta Financial Services Authority (MFSA MT). For more information, see the Source Link.

Regulator Information

Abbreviation: MFSA
Jurisdiction: Malta

Recent Articles

SEC Charges Former Pharmaceutical Global IT Manager in $8 Million Insider Trading Scheme

Washington D.C., Sept. 17, 2021 — The Securities and Exchange Commission today announced insider trading charges against Dayakar R.

SEC Awards $11.5 Million to Two Whistleblowers

Washington D.C., Sept. 17, 2021 — The Securities and Exchange Commission today announced awards of approximately $11.

Issuance of Executive Order Imposing Sanctions on Certain Persons with Respect to the Humanitarian and Human Rights Crisis in Ethiopia; Ethiopia General Licenses and...

The President has signed a new Executive Order Imposing Sanctions on Certain Persons with Respect to the Humanitarian and Human Rights Crisis in Ethiopia.  OFAC has...

CVM suspends registration of 3 subsidized companies

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

CFPB Report: Renters at Risk as COVID-19 Safety Net Ends

Stimulus Checks and Other Payment Relief Linked to Renters’ Financial Stability WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today released a report warning...

Get the latest from Regulatory.News in your inbox!

×