The European Central Bank (ECB) has imposed a €2.26 million administrative penalty on Nordea Finance Finland Ltd for incorrectly reporting its largest exposures over 13 consecutive quarters between 2021 and 2024.
The bank breached EU rules on large exposures, which prohibit any single exposure from exceeding 25% of a bank’s capital. The violations occurred due to the bank assigning guaranteed receivables to debtors instead of guarantors, a practice prohibited by regulatory changes in 2021. ECB noted serious negligence and deficiencies in Nordea’s internal controls contributed to the breaches. The bank can challenge the decision before the Court of Justice of the European Union.
(bankingsupervision.europa.eu)
