ECB fined Irish bank for a total of €2.5m
The ECB has fined Irish bank PTSB €2.5m for breaking liquidity rules, its first such penalty
The European Central Bank (ECB) has issued its first penalty against a bank since tough new rules were introduced in the wake of the financial crisis.
Irish bank Permanent TSB (PTSB) has been slapped with fines totaling €2.5m after breaching its liquidity requirements on two occasions between October 2015 and April 2016.
The ECB said the issues that led to the breach have now been fully rectified.
A €750,000 penalty was imposed for failing to comply with a request fromt the ECB in February 2015 and the breach itself happened between October and December of that year.
The second penalty of €1.75m came after a similar request in November of 2015 and that breach occurred between January and April 2016.
It’s the first time the central bank has issued a fine since taking over responsibility for banking standards in 2014 after the financial crisis.
Banks must hold a big enough buffer in liquid assets such as cash, under Liquidity Coverage Requirement (LCR) rules.
