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Violation Tracker UK Individual Case

Company: Co-operative Bank Plc
Current Parent CompanyCo-operative Bank
Parent at the Time of the Penalty Announcement: Co-operative Bank
Penalty: £0
Year: 2015
Date: 11 August, 2015
Offence Group: financial offences
Offence Type: internal controls deficiency
Violation Description: The PRA found Co-op Bank's control framework to be flawed both in design and operation, and found inadequacies in the firm's risk management framework policies and in its capital management and corporate lending policies and procedures. This meant that the firm did not adequately consider the level of risk it assumed and therefore did not have the capability to manage that risk. This in turn had the potential to weaken the firm and reduce its resilience. The PRA also found deficiencies in the management information which the firm produced. These deficiencies led to the Co-op Bank's Board not being appropriately apprised of key issues, which hampered its ability to manage the business effectively. The PRA considered these breaches by Co-op Bank to be sufficiently serious to warrant a substantial financial penalty. However the PRA concluded that imposing a financial penalty on Co-op Bank would not advance the PRA's statutory objective to promote the safety and soundness of the firms it regulates. The PRA said it would otherwise have imposed a financial penalty of around £120 million on Co-op Bank.
Action Type: agency action
Agency: Prudential Regulation Authority
HQ Country of Parent: United Kingdom
Ownership Structure of Parent: privately held
Major Industry of Parent: financial services
Specific Industry of Parent: banking
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