Scotiabank has been ordered to pay €600,000 as part of a settlement with the Central Bank over breaches in relation to liquidity reporting returns.
In a statement, the Central Bank said that five breaches were identified, relating to: Scotiabank (Ireland) Ltd failing to provide accurate information in liquidity reporting returns from 28 September 2007 to 27 June 2008, and from 4 December 2009 to 5 March 2010; and, the bank failing to have adequate controls and checks to verify the liquidity return process.
In 2008 Scotiabank notified the Central Bank that its calculations of quantitative liquidity ratios were incorrect.
Allowable discounted liquid assets had been overstated by $300m. Access to appropriate levels of funding was available to the firm.
In April 2010 the firm notified the Central Bank that an automated programme error had been discovered in 12 of the firm's weekly liquidity returns between December 2009 and March 2010.
These errors resulted in an understatement of cash outflows of approximately $106m.
The Central Bank said it had taken into account that the breaches were not deliberate; that Scotiabank had reported them, and taken steps to rectify them; and that Scotiabank had cooperated during the investigation.
The statement said that full compliance with applicable liquidity requirements and accurate reporting to the Central Bank were essential components of an effective system of banking regulation.
