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Breaches cost Ulster Bank €2m

IRELAND'S financial giant Ulster Bank has imposed pay curbs on staff responsible for breaches of rules.

The group was subjected to a €1.96m fine from the Central Bank yesterday and admitted that the pay of staff involved had been affected in the penalty settlement.

The fine is the sixth largest imposed by the Central Bank since the financial crisis.

Ulster Bank is supposed to set aside capital relative to the size of the deposits it takes in to ensure that it could meet future calls in a timely manner.

The banking regulator said Ulster Bank "took appropriate action to ensure accountability" over a €313m gap in capital buffers which had been put in place to protect against possible losses.

The Central Bank said that this resulted in "individual performance reviews and compensation packages being impacted".

The Central Bank imposed the fine in part for these breaches and also for failing to report them to the relevant authorities at the time. Ulster Bank chief executive Jim Brown accepted the breaches were "unacceptable" but that the bank itself identified and notified the contraventions to the regulator.