City National Bank imposed with USD 65 million fine

The Office of the Comptroller of the Currency (OCC) mentioned that the fine was imposed because the financial institution was reportedly engaged in unsafe and unsound practices, as well as having gaps in its overall risk management and internal controls. 

At the same time, the Office of the Comptroller of the Currency issued a cease-and-desist order, which required the bank to take broad, secure, and comprehensive corrective actions in order to optimise its strategic plan. The City National Bank mentioned that it will focus on its commitment to resolving the matters identified in the OCC’s order as fast as possible. 

The financial institution will prioritise the process of strengthening its infrastructure and systems in order to meet the needs, preferences, and demands of its customers in a secure and efficient manner, while also remaining compliant with the laws and regulations of its local industry. 

RBC’s recent strategy of development

The Royal Bank of Canada represents a globally recognised financial institution, focusing on optimising customer experience, and providing its suite of tools and services to its clients in Canada, the US, and 27 other countries. The bank had multiple developments and collaborations in the last couple of months, covering several geographic areas around the world. 

In October 2023, the Royal Bank of Canada (RBC) announced its partnership with the global business platform Xero in order to optimise the manner in which businesses and companies automate payments to suppliers. This integration aimed to centre around the bank’s PayEdge platform, which was developed to enable businesses to amalgamate funding sources, and pay suppliers using their preferred transaction methods, as well as irrespective of the customer’s bank of account type. 

At the same time, the development was expected to allow Canadian businesses that leverage Xero in order to import authorised invoice details into RBC PayEdge, as well as facilitate supplier payments through their chosen methods and automatically update the reconciliation data in Xero, after the procedure was completed securely and efficient. 

Earlier in September 2023, RBC announced that it had injected capital into its Los Angeles-based subsidiary City National Bank, in order to optimise the unit’s liquidity and pay down a higher cost of borrowing. At the same time, the Royal Bank of Canada mentioned that the decision represented a part of its management strategy to improve profitability at City National. At the moment of the press release, the bank did not disclose how much capital was provided to the unit.