Financial penalties paid by North American and European banks in 2017 were down 48% on the previous year, according to analysis by Boston Consulting Group (BCG).
In its report Global Risk 2018: Future-Proofing the Bank Risk Agenda, the consulting group found that the regions’ 50 biggest lenders paid regulators $22bn in settlements or fines last year. The only post-crisis year to generate a lower volume was 2010, when banks coughed up $8bn.
BCG noted that most of the 2017 penalties related to mis-selling and improper conduct which occurred in years past. The most punishing years were 2013 and 2014, a 24-month period in which banks collectively handed over more than $150bn in penalties.
North American regulators and banks were, respectively, the primary givers and receivers of 2017’s fines.
Since 2009, BCG’s sample of banks have paid some $345bn in financial penalties.
For more on bank fines, see The Banker’s ‘Another fine mess? How penalties are calculated’.
