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# ECB Banking Supervision Fines Estonia's LHV Group €405,000 for Regulatory Reporting Violations
- URL: https://www.theglobalbanker.com/ecb-banking-supervision-fines-lhv-group-405000-regulatory-reporting-violations-2025/
- Published: 2025-11-04T09:00:00.000Z
- Updated: 2026-10-02T14:18:51.000Z
- Description: The ECB's Banking Supervision arm imposed a final €405,000 penalty on AS LHV Group, Estonia's largest domestically owned bank, for violations of regulatory reporting requirements on 24 September 2025.
- Author: TGB Editorial Team
- Tags: Regulations, Europe, #archive

The European Central Bank's Banking Supervision arm has imposed a €405,000 penalty on AS LHV Group, Estonia's largest domestically owned bank, for violations of regulatory reporting requirements. The penalty was imposed on 24 September 2025, following the conclusion of ECB supervisory proceedings, and is final. The decision was published on the ECB's supervisory sanctions webpage.

#### NATURE AND CONTEXT OF THE VIOLATIONS

According to the ECB, LHV Group breached Article 430(1)(a) of the Capital Requirements Regulation with serious negligence by reporting inaccurate information on its risk-weighted exposure amount and own funds requirements for foreign-exchange risk, and consequently on its capital ratios, for eight consecutive reporting periods from 30 June 2022 to 31 March 2024, owing to the undue inclusion of an intragroup sterling-denominated equity exposure as a short position in its overall net foreign-exchange position. The ECB said the inaccuracies prevented it from obtaining a comprehensive view of LHV Group's risk profile in the relevant periods, and classified the breach as 'moderately severe'.

Under the SSM framework, the ECB holds direct supervisory authority over significant institutions across the euro area. LHV Group qualifies for direct ECB oversight on the basis of its systemic importance within the Estonian financial system. The bank is the largest domestically owned bank in Estonia.

#### REMEDIATION

The ECB's Banking Supervision regularly publishes details of sanctions imposed on entities under its direct oversight. 

The ECB said it took into account, as mitigating circumstances, the remedial actions LHV Group had already implemented to remedy the breach and prevent similar breaches, as well as its financial situation.