The ECB banking supervisory authority has imposed a fine of several million euros on Landesbank Hessen-Thüringen Girozentrale (Helaba) for violating reporting obligations. The bank had to pay a fine of around 6.8 million euros, bank inspectors said on Friday in Frankfurt. In the Corona year 2020, Helaba reported too low risk-weighted assets for market risks for three quarters in a row. With its internal models, it deliberately ignored the increased fluctuations on the stock exchanges when the corona pandemic broke out. The bank knowingly gave the European Central Bank (ECB) incorrectly calculated figures. The ECB was therefore unable to form a correct picture of Helaba’s risk profile.
Risk-weighted assets measure the risks that a financial institution has on its books. Banks calculate their capital requirements on this basis. The institute therefore reported a higher core capital ratio (CET 1) than it should have reported, the ECB explained. The ratio shows the capital strength of an institution and thus its ability to absorb losses. Regarding the punishment, Helaba explained that at the time it had assumed that its actions were permissible. At no time was a breach of obligations intended.