Emma RadmorePRA has censured Wyelands Bank Plc for wide-ranging and significant failings in its governance, controls and risk management procedures over a period from the end of 2016 to mid 2020. The failings related to:
- large exposure limits
- capital reporting
- governance and risk controls
- OIREQs imposed by PRA
- poor retention of WhatsApp messages
The action is the first time that PRA has found a breach of Fundamental Rule 3 in relation to large exposure limits. It would have fined the bank £8.5m but the bank is in wind-down and has very limited financial resources.
The bank failed after it became a member of the Gupta Family Group Alliance, which resulted in PRA requiring it to limit its exposures to the Alliance and connected parties due to unacceptable concentration of risk. Soon after that, the bank stopped entering into new credit transactions and started to wind down. It has successfully repaid all its depositors.