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The Lloyds Banking Group incorrectly classified 44.1 billion GBP of customer deposits in figures presented by the Bank of England, an error that has adopted official data to check the banks whether the banks were short -lived in the event of interest payments.
The group said Financial behavioral authority in his review of the cash savings market.
The Boe said that from October last year 232 billion GBP were recorded on the accounts of individuals who do not earn interest rates compared to GBP 1.5 billion to accounts that attracted interest payments.
Lloyds’ mistake was remedied at the end of last year, which cited the number of deposits in non-interest-bearing accounts to jump to 282 billion GBP when the Boe published its figures for November.
The data is compiled monthly on the basis of submissions of individual banks, whereby the BOE causes a national total number to be kept in the type of account funds throughout the Great Britain.
Lloyds An internal review last year has built up several current account products that they had incorrectly classified when submitting its statistics. The bank said that she informed the Boe and updated her latest submission to correct the error.
“Customers have no effects, no effects on capital and no effects on external financial reporting,” said Lloyds.
The Boe declined a comment.
Lloyds’ mistake risks to invalidate the historical accuracy of the data used by the FCA in the check of the cash park market.
The banks were intensively checked how quickly they passed interest shots and cuts to savers and borrowers, as a cycle of Rapid’s interest changes began in early 2022. The lenders recorded a period of bumpers when they increased the interest rates that they laid faster for loans than they made the benefits of higher rate on spavers and boosting edges accessible.
Harriett Baldwin, then chairman of the Treasury Select Committee, accused the banks at the time of the “(useful) customers of the most loyal savings customer to increase the profit margins”.
The windfall for lenders led to a threat to the former Chancellor Jeremy Hunt to take regulatory measures against lender that do not increase the savings and culminated in the review of the FCA July 2023.
In September 2024, the FCA once again used the BOE numbers when it provided an update for the review and found that they had worked with nine banks and construction companies – including Lloyds – to ensure that they offer customers a fair value.
A person trusted with the matter said that Lloyd’s reporting errors on average simple access rates, which the FCA led in their report, were lower than they would have been.
However, the person said that the error had not significantly influenced the review of the money savings market, its conclusions or political measures by the watchdog.
The FCA rejected a statement.
While Lloyd’s reporting errors had no significant consequences, such office errors for banks can be expensive.
Barclays had to pay a penalty of $ 361 million to the US Securities and Exchange Commission and 450 million GBP to investors in 2022.
In 2018, Metro Bank’s inaccurate reporting via risk weighting to some of its commercial loans in Challenger Bank triggered and ultimately led to a fine of 15 million GBP of fines from FCA and Boe.
