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The Bank of England has imposed a fine of £1.385m on Qatar Islamic Bank's UK arm, QIB (UK), saying that it had "failed to meet some of the most basic regulatory standards".

The fine was levied by the Bank's Prudential Regulatory Authority (PRA) after QIB fell short of reporting requirements in 2011 and 2012.

QIB had made no regular assessment of its capital, the PRA said.

"QIB's failures in this regard were serious," it added.

The PRA said that from 30 June 2011 to 31 December 2012, QIB failed to recognise that it had to comply with regulatory requirements relating to the assessment and maintenance of financial resources and capital.

"QIB further failed properly to monitor and report to the regulator its total exposure to connected parties and in December 2011 was significantly exposed to a group of connected clients," the PRA said.

However, it recognised that QIB had since undergone "significant restructuring" and that a new board was now in place.