Monday 20 August 2018 6:50 pm

European Central Bank fines Credit Agricole €5m for reporting errors


Chief City reporter covering banking, finance, economics and the City

Chief City reporter covering banking, finance, economics and the City

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French bank Credit Agricole must pay almost €5m (£4.5m) in fines after the European Central Bank (ECB) found it had misreported key balance sheet information.

The lender classified instruments as common equity tier 1 (CET1) without obtaining permission, the ECB said in a statement.

Banks must hold a certain amount of equity capital to protect against financial crisis, with a higher CET1 capital ratio indicative of a more resilient balance sheet. Classifying existing instruments as CET1 could therefore give the impression that a bank is stronger than it really is.

Credit Agricole was fined €4.3m, while its subsidiaries, Credit Agricole Corporate and Investment Bank and CA Consumer Finance, were fined €300,000 and €200,000 respectively for similar procedural breaches.

The decision imposing a sanction may be challenged before the Court of Justice of the European Union.

Credit Agricole did not immediately respond to a request for comment.

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