Banco de España fines CAIXABANK and BBVA

The Banco de España has imposed two fines on CAIXABANK, S.A., totalling €4,800,000, with the following details:

  • A fine of €3,600,000 for the commission of a very serious infringement as defined in Article 4(e) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions.

There are three grounds for the imposition of this fine. First, the institution has not observed the limits imposed on early redemption penalties by Law 41/2007. Second, it did not correctly apply the rules on the replacement of benchmark indices when they disappear, established in Additional Provision Fifteen of Law 14/2013. Third, it did not comply with the rules on rounding interest rates established in Additional Provision Twelve of Law 44/2002.

  • A fine of €1,200,000 for the commission of a serious infringement as defined in Article 5(e) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions.

This fine was imposed as a consequence of various breaches of Order 2899/2011 and Banco de España Circular 5/2012. The institution has failed to observe certain requirements relating to:

  • the delivery of pre-contractual information and its minimum content
  • the proper retention of contractual documentation
  • the way in which the APR is calculated and
  • the information supplied in relation to compensation for interest rate risk in early redemptions.

 

The Banco de España has imposed two fines on BANCO BILBAO VIZCAYA ARGENTARIA, S.A., totalling €2,700,000, as follows:

  • A fine of €1,500,000 for the commission of a serious infringement as defined in Article 5(e) of Law 26/1988 of 29 July on discipline and intervention of credit institutions for breach of Order 2899/2011 and Banco de España Circular 5/2012.

There are several grounds for the imposition of this fine. The institution has failed to observe certain requirements relating to:

  • the pre-contractual information to be supplied to the customer
  • the way in which the APR is calculated and
  • the information supplied in relation to compensation for interest rate risk in early redemptions
  • the charging of fees for the cancellation of registry entries and
  • the retention of contractual documentation.

 

  • Fine of €1,200,000 for the commission of a serious infringement as defined in Article 5(d) of Law 26/1988 of 29 July 1988 on discipline and intervention of credit institutions.

First, the institution has not observed the limits imposed by Law 41/2007 on early redemption penalties. Second, it did not correctly apply the rules on the replacement of benchmark indices when they disappear established in Additional Provision Fifteen of Law 14/2013.

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