UK’s Prudential Regulation Authority (PRA) has imposed a fine of £46.55m on Standard Chartered Bank (SCB) for not being open and cooperative with the regulator and misreporting its liquidity position.

The PRA stated that the lender made five errors while reporting its liquidity metric between March 2018 and May 2019.

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SCB’s failings meant that the regulator did not have a reliable overview of the bank’s USD liquidity position.

In October 2017, PRA imposed temporary additional liquidity requirements on SCB to address the risk of USD liquidity outflows.

PRA chief executive and Prudential Regulation deputy governor PRA Sam Woods said: “We expect firms to notify us promptly of any material issues with their regulatory reporting, which Standard Chartered failed to do in this case.

“Standard Chartered’s systems, controls and oversight fell significantly below the standards we expect of a systemically important bank, and this is reflected in the size of the fine in this case.”

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In its investigation, the regulator found that in one of the cases SCB informed PRA about the error after a four-month internal investigation into the issue.

The error occurred because a cell in the spreadsheet had a positive value where a negative value or zero was expected. It resulted in an overreporting of USD Gap 2 Metric by $7.9bn.

SCB failed to implement a documented policy on reporting liquidity errors and ensure that it had appropriate human resources to investigate potential misreporting, the PRA added.

The bank has also been fined for not having adequate controls testing and checks in place for liquidity reporting.

SCB qualified for a 30% discount on a £66.5m fine because it agreed to resolve the matter. The PRA added that this is the highest ever fine in a PRA-only enforcement case.