LONDON: The Bank of England's Prudential Regulation Authority (PRA) has fined challenger bank Metro Bank 5.38 million pounds ($7.13 million) for failures in its regulatory reporting governance and controls, it said on Wednesday.

The fine relates to regulatory returns made by Metro Bank between May 2016 and Jan 2019, the PRA said.

Metro Bank announced in Jan 2019 that it had corrected risk weightings of some of its commercial loan portfolios.

The PRA said the incorrect risk weightings meant the bank had previously presented an inaccurate picture of its regulatory capital.

"We expect firms to invest appropriate and adequate resources to ensure that they submit accurate regulatory returns," said Sam Woods, chief executive of the PRA.

"In this case, Metro Bank failed to meet the standards of governance and controls expected of it, resulting in today's enforcement action."

Metro Bank said in a separate statement it had agreed the resolution of the issue with the PRA, and that the bank has since made "significant improvements to and substantial investment in its regulatory reporting processes and controls".

Metro Bank said there was no update on a separate investigation by the Financial Conduct Authority.

The PRA said Metro Bank received a 30% discount to the fine because it agreed to resolve the matter.

The PRA also said earlier this week it was fining Standard Chartered 46.55 million pounds for misreporting its liquidity position to the regulator and for failings in its controls.