Spain’s Banco Sabadell Fined by ECB Over Capital Buyback

The European Central Bank has fined Spain’s Banco Sabadell 1.6 million euros for buying back some of its capital without the ECB’S permission.

“The penalty has been imposed in respect of the bank repurchasing its CET1 (Core Equity Tier 1) instruments from 1 January, 2014 to 7 November, 2016 without the prior permission of the banking supervision authority,” the ECB said. “This constitutes a continuous breach of own fund requirements in that period.”

Sabadell has challenged the fine before the Court of Justice of the European Union, the ECB added.