Technical Glitch at Royal Bank of Scotland: Alarm for Others?

From Zacks –

“Troubles do not seem to end at The Royal Bank of Scotland Group plc (RBS - Snapshot Report). The company, presently under investigation by the U.S. Department of Justice for alleged manipulation of foreign exchange rates, was hit by a massive technical collapse on Jun 16.

Reportedly, failure of the company’s “batch-processing systems” prohibited the ingesting of a payment’s file from a third-party provider. Subsequently, the system failed to process roughly 600,000 direct debit and credit transactions. Additionally, the technological glitch has affected customers not only at Royal Bank of Scotland but also at its subsidiaries – National Westminster Bank Plc (Natwest) and Ulster Bank Ltd. The mishap will be subject to investigations by Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”) in UK.”

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United Kingdom: Prudential Regulation Authority

“On 1 April 2013 the Prudential Regulation Authority (PRA) will become responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. In total the PRA will regulate around 1,700 financial firms. The PRA’s role is defined in terms of two statutory objectives to promote the safety and soundness of these firms and, specifically for insurers, to contribute to the securing of an appropriate degree of protection for policyholders.”

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