Public statement relating to Settlement Agreement between the Central Bank of Ireland and Scotiabank (Ireland) Limited

Date02 June 2011
PO BOX 559 T +353 1 224 4000
Dame Street F +353 1 671 6561
Dublin 2
Settlement Agreement between the Central Bank of Ireland
and Scotiabank (Ireland) Limited
The Central Bank of Ireland (“the Central Bank”) has entered into a Settlement Agreement
with effect from the 2nd June 2011 with Scotiabank (Ireland) Limited (“the firm”), a regulated
financial service provider in relation to breaches of regulation 16 of the European
Communities (Licensing and Supervision of Credit Institutions) Regulations 1992 and section
Five breaches were identified. These breaches related to:
1) The firm failing to provide accurate information in liquidity reporting returns from the
28th September 2007 to 27th June 2008 and from the 4th December 2009 to 5th March
2010 as a result of which there was a failure to comply with liquidity ratios in 14
returns during the first period.
2) The firm failing to have adequate controls and checks to verify the liquidity return
The Central Bank reprimanded the firm and required it to pay a monetary penalty of
In 2008 the firm notified the Central Bank that the calculations of the quantitative liquidity
ratios performed by the firm were incorrect. Allowable discounted liquid assets were
overstated by US$300 million due to the inadvertent inclusion of certain Investment Grade
Securities in the calculation; the calculation of cash flows did not include all interest inflows

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