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(Reuters) -A prime U.S. financial institution regulator on Wednesday imposed a $65 million high-quality on the Royal Financial institution of Canada’s American unit, Metropolis Nationwide Financial institution, over gaps within the lender’s threat administration and inside controls.
The Workplace of the Comptroller of the Forex (OCC) mentioned that the financial institution engaged in unsafe or unsound practices, together with failure to determine efficient threat administration and inside controls.
The OCC issued a cease-and-desist order requiring the financial institution to take broad and complete corrective actions to enhance its strategic plan, the company mentioned in a press release.
Metropolis Nationwide Financial institution mentioned in a press release to Reuters early Thursday that it’s dedicated to resolving the issues recognized within the OCC’s order as rapidly as doable.
“Our focus will proceed to be on each strengthening our infrastructure and programs to mirror a financial institution of our dimension and enterprise mannequin,” it mentioned.
In October, Metropolis Nationwide disclosed that RBC has injected about $2.95 billion into its U.S. unit to bolster its capital. The capital injections got here as part of administration actions to enhance profitability at Metropolis Nationwide.
RBC has beforehand mentioned realized losses at Metropolis Nationwide could be eradicated on the RBC consolidated degree.