AIB fined €490,000 by Central BankThursday 19 December 2013 22.32
The Central Bank has fined AIB €490,000 for breaches of its liquidity risk management requirements.
The bank said that AIB recorded four contraventions of the requirements at various times between September 2007 and May 2013.
They included not having adequate internal controls in place to ensure the integrity of its regulatory liquidity, while it also failed to ensure the integrity of liquidity reporting to the Central Bank.
AIB failed to document the requirement to analyse its foreign currency liquidity under various scenarios, while it also did not adequately take account of seasonal factors when preparing liquidity returns.
"The penalties imposed in this case reflect the importance the Central Bank places on compliance with regulatory reporting obligations," the bank said in a statement.
AIB itself identified the contraventions and brought them to the attention of the Central Bank.
It said today that AIB had access at all times to sufficient liquidity and had taken appropriate remedial steps the rectify the breaches.
Last week the Central Bank fined Citibank Europe €550,000 for similar breaches.
"The failure by a credit institution to accurately report its liquidity position to the Central Bank undermines the ability of the Central Bank to supervise such an institution and is viewed as a serious matter," commented the Central Bank's Director of Enforcement Derville Rowland.
She said that regulated institutions must have power and effective systems and controls in place to ensure compliance with their regulatory reporting obligations.