* Liquidity, capital rules violations took place in 2011
* Customers not affected, CBank says considers matter closed
* Latest in series of regulatory problems at nationalised
DUBLIN, Nov 19 The Irish Central Bank has fined
Royal Bank of Scotland's Irish unit 2 million euros
($2.5 million) for violating liquidity and capital rules, in the
latest regulatory blow to the nationalised British bank.
RBS is already under investigation by U.S. and UK
authorities over the Libor interest rate rigging scandal and for
possible breaches of U.S. economic sanctions against Iran.
The Central Bank said RBS subsidiary Ulster Bank reported a
capital shortfall in March last year of 313 million euros. The
firm immediately received a capital injection from RBS to
rectify the shortfall.
Ulster Bank lacked sound strategies and processes to assess
its capital levels during the period of the violations, between
Jan. 26 and Sept. 13, 2011, the central bank said.
It failed to apply the correct haircuts to four categories
of retail and corporate deposits, failed to maintain effective
internal controls for the management of liquidity risk and
excluded certain cash inflows from the calculation of its
liquidity position, the statement said.
Ulster Bank said in a statement that the violations had not
affected customers and that it had since implemented "a number
of robust measures to ensure similar contraventions are not
The central bank said it considered the issue was now