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Ulster Bank fined €4.6m by Central Bank for failings around mortgage data supplied to regulator


Stock photo: PA

Stock photo: PA


Stock photo: PA

ULSTER Bank has been fined €4.6m by the Central Bank for failings around mortgage data it supplied to the regulator.

The fine would have been €6.5m, but the bank got a discount of 30pc for reaching a settlement with the regulators in the Central Bank.

Ulster Bank admitted to the breaches which mainly involved how it submitted returns on mortgage arrears.

An investigation by regulators found there was a failure to prepare proper returns.

There were questions around the integrity of the data supplied by the British-owned bank to the Central Bank.

Ulster Bank was told in 2013 that there were issues with how it was compiling data to meet what the Central Bank calls its Mortgage Arrears Resolution Targets.

But it was another two years before the bank acted to address the failings, the Central Bank said in a release.

“This inaction and delay by the firm is unacceptable and the Central Bank is treating such failure by the firm as an aggravating factor in this case,” the Central Bank said.

It added that a further aggravating factor is the bank’s previous enforcement record, which has repeatedly identified poor governance practices at the firm.

The Central Bank’s Director of Enforcement and Anti-Money Laundering Seána Cunningham said: “Accurate and reliable data is vital to the Central Bank’s ability to monitor risk and supervise firms effectively, and to ensure the ongoing stability of the financial system.

“Effective governance is a fundamental part of ensuring data quality.”

She said banks must satisfy themselves that they have robust, effective and tested governance in place to ensure the quality of the data they manage and disseminate.

Online Editors