U.K. Unit of Qatar Islamic Bank Fined for Capital Rule Breaches
- Qatar bank ordered to pay $1.9 million by Bank of England
- QIB (UK) says it has taken remedial action to fix problems
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A U.K. unit of Qatar Islamic Bank was fined 1.4 million pounds ($1.9 million) by the Bank of England for violating capital requirements, leaving the firm exposed to high levels of risk.
The BOE’s Prudential Regulatory Authority said in a statement Friday that London-based QIB (UK) Plc had “significant failings” between June 2011 and December 2012 in its oversight of financial resources and capital levels. The bank’s large exposures amounted to more than 25 percent of its capital at one point during the period, breaching regulatory requirements and resulting in the lender being “temporarily significantly under-capitalized,” according to the BOE.