October 8, 2018 / 10:41 AM / 2 months ago

Irish central bank fines Citibank Europe for lending failures

DUBLIN, Oct 8 (Reuters) - Ireland’s Central Bank fined Citibank Europe 1.3 million euros ($1.49 million) on Monday for breaches to its lending code including failures in the reporting and approval of credit card loans to three senior managers.

Citibank Europe, which operates branches across Eastern Europe from its Dublin headquarters, said in a statement that it was pleased to have resolved the matter and that it did not affect clients.

Citigroup shifted the head office of its European retail banking operation to Dublin from London in 2016, after which time it identified the breaches stretching back five years and informed the regulator, the central bank said in a statement.

Following a requested for further information, Citibank found instances of unapproved lending to senior management and a prolonged and serious error in its reporting of loans to related parties, the statement added.

The investigation found no evidence that loans were granted to the managers on more favourable terms to a non-related party, but that the inaccurate reporting meant that the regulator could not properly monitor its exposures to related parties.

The Central Bank said Citibank acknowledged the breaches and that it was satisfied the bank has taken the necessary steps to rectify the deficiencies that gave rise to the breaches. ($1 = 0.8711 euros) (Reporting by Padraic Halpin Editing by Andrew Heavens)

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