By Europe’s largest bank, HSBC, has been fined £57.4 million ($72.8 million) by U.K. regulators for inadequately safeguarding customer deposits in the event of a bank collapse, as announced on Tuesday.
According to the Prudential Regulation Authority (PRA), two branches of HSBC Holdings Plc, based in London, breached regulations aimed at ensuring regulators have sufficient information to protect depositors during bank failures.
This penalty ranks as the second-largest ever imposed by the agency, trailing only the £87 million fine against Credit Suisse last July following its near-collapse and emergency acquisition by rival UBS.
The violations by HSBC, which occurred between 2015 and 2022, included inaccurately identifying deposits eligible for protection under a U.K. program guaranteeing bank deposits up to £85,000 ($107,800) for individuals, stated the bank regulator.
Sam Woods, the CEO of the Prudential Regulation Authority, described the shortcomings as significant and fundamental to the agency’s objective of ensuring bank safety and stability.
HSBC cooperated with the investigation and opted to settle the case, the authority confirmed. Without this cooperation, the fine would have amounted to £96.5 million ($122.4 million).
The bank expressed satisfaction with resolving the matter.
“We are pleased to have reached a resolution,” HSBC said in a statement, highlighting the bank’s cooperation and efforts to address the issues outlined by the PRA.
