The ECB again imposes a fine of 4.8 million euros on Crédit Agricole
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This is a measure already taken by the European banking policeman in 2018, but which the bank had contested.
The European Central Bank on Tuesday again fined the French bank Crédit Agricole and two of its subsidiaries a total of 4.8 million euros for a breach of capital reporting rules, after the cancellation of a first sanction by European justice.
In addition to a fine of 4.3 million euros for the parent company, Crédit Agricole SA (CASA, listed on the stock exchange), the subsidiaries Crédit Agricole Consumer Finance (190,000 euros) and Credit Agricole Corporate and Investment Bank (300,000 euros) also been sanctioned.
Crédit Agricole can challenge the decision
This is a measure already taken by the European banking policeman in 2018, but that Credit Agricole had disputed. In 2020, European justice canceled the fines, considering them as “insufficiently motivated“. If the Court did not question the legality of the decisions of the ECBhe felt that they “do not provide details on the methodology applied” for “determine the amount of penalties“. “The ECB has now remedied this procedural loophole and reimposed the sanctions“Explains the institution in a press release. In detail, the bank and its subsidiaries are accused of having “classified newly issued shares as equity (…) without having obtained prior authorization from the ECB“Said the Francortoise institution in a press release.
The breaches noted by the ECB relate to five quarterly statements of results between 2015 and 2016 and capital ratios, which measure the solvency of a bank. Since the financial crisis of 2008 and the tightening of ECB regulations, banks in the euro zone must hold a certain capital ratio to limit losses in the event of a new crisis. The ECB has ensured since 2014 that the responsibility of single supervisor of the banks of the euro zone but has only rarely used its sanctioning power on private establishments. Crédit Agricole once again has the possibility of appealing this decision before the Court of Justice of the European Union (CJEU), specifies the ECB.
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