Citigroup wants to deal with weaknesses in the way it manages monetary data, in response to a review of the largest banks’ so-called residing will plans, U.S. banking regulators stated Wednesday.
Citigroup’s points might harm its capacity to provide correct studies in instances of duress, and that would hamper the agency’s capacity to efficiently execute decision planning, the Federal Reserve and the Federal Deposit Insurance coverage Company instructed the financial institution in a letter.
The most important and most essential U.S. banks must submit detailed plans to regulators that specify how they are often rapidly unwound in the occasion of an enormous disruption or chapter, a part of the reforms that emerged from the 2008 monetary disaster. In a earlier spherical, six corporations together with Financial institution of America, Wells Fargo and Morgan Stanley had been discovered to have shortcomings in their capacity to provide data, however all the companies addressed these issues, the regulators stated.
For the newest review, Citigroup was the one financial institution among the many eight establishments that was discovered to have a shortcoming in its plan, the regulators famous.
“Issues regarding the Covered Company’s data governance program could adversely affect the firm’s ability to produce timely and accurate data and, in particular, could degrade the timeliness and accuracy of key metrics that are integral to execution of the firm’s resolution strategy,” the businesses instructed Citigroup in a letter dated Nov. 22.
In an announcement, the New York-based financial institution stated it was “completely committed” to addressing the shortcoming discovered in its 2021 decision plan.
“As part of the transformation Citi has embarked upon, we are making significant investments in our data integrity and data management, as the letter notes,” the financial institution stated. “We will leverage that work to remediate the shortcoming identified today, as we acknowledge there is much more work to do.”
Shares of Citigroup slipped 0.75% in early buying and selling.
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