LONDON, Jan 30 Reuters HSBC has been fined 57.4 million pounds 73 million for serious failings in protecting some depositors over several years, in the first penalty of its kind under British rules designed to protect customers if banks fail.

The Bank of England39;s Prudential Regulation Authority PRA said on Tuesday that HSBC failed to accurately identify deposits eligible for Britain39;s Financial Services Compensation Scheme FSCS which protects customer cash up to 85,000 pounds.

This is the second largest fine ever imposed by the PRA, topped only by an 87 million pound penalty on Credit Suisse in July 2023.

The serious failings in this case go to the heart of the PRA39;s safety and soundness objective, said Sam Woods, deputy governor of the Bank of England and CEO of the PRA.

It is vital that all banks comply fully with our requirements around preparedness for resolution.

UBS39;s takeover of its Swiss rival Credit Suisse in March has raised concerns about whether the toobigtofail regulatory framework that emerged from the financial crisis in 2008 is fit for purpose.

Globally systemically important banks such as HSBC and UBS are required to plan for resolution, which should allow regulators to unwind them without triggering broader systemic consequences.

Britain39;s deposit protection rules require lenders to ensure critical information is held in order for the FSCS to compensate customers if a firm fails.

The failings at one unit of HSBC which was found…