Wyelands Bank case warrants extra scrutiny post-SVB collapse
The recent case of a bank heavily reliant on business coming from the group of companies that owned it raises questions about the risks such exposure causes to financial institutions, their customers, and the sector at large.
On April 4, the Bank of England’s enforcement arm, the Prudential Regulation Authority (PRA), censured Wyelands Bank for “wide-ranging” and “significant” regulatory failings that took place between December 2016 and May 2020.
Wyelands became the first financial institution to prompt the regulator to act against it for flouting rules regarding large capital exposure limits and failing to act in a prudent manner. Other serious breaches cited in the PRA’s final notice related to capital reporting, risk and governance controls, and poor retention of WhatsApp messages.