BPCE Unit Fined 800,000 Euros on Risk Controls, Les Echos Says

Groupe BPCE’s biggest regional banking unit was fined 800,000 euros ($1.1 million) by French regulators for inadequate market-risk controls, Les Echos reported, citing unidentified sources.

BRED, a unit of BPCE’s Banque Populaire, introduced increasingly complex products without beefing up its risk controls, the regulators found, according to the newspaper report. The regulators disclosed the penalty on Jan. 2 without naming the bank that was sanctioned, Les Echos said.

BRED spokeswoman Nathalie Avril wasn’t available for immediate comment.

To contact the reporter on this story: James Hertling in Paris at jhertling@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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