France's accounting regulator, the Haut Conseil Du Commissariat aux Comptes, has criticised the quality of Société Générale's monitoring systems, saying the bank should 'improve' its methods.
Philippe Séguin, president of the regulator, released a report stating that there was 'room for improvement' in SocGen's supervisory commission, which monitors national banks.
The bank is faced with overcoming its losses after a £3.7bn fraud at the hands of a junior trader who appears to have taken advantage of poor internal controls.
The bank maintained the rogue trader, Jérôme Kerviel, acted alone by using stolen access codes and falsifying confirmatory trading emails.
'It will require an effort' to improve banking controls, Séguin said.
He also acknowledged the challenge is 'extremely complex, because we are discovering how far bank fraud can go.'
'This fell on us just as it fell on Singapore and England a few years' ago. We are not alone in facing this challenge,' he said, in reference to the UK's rogue trader Nick Leeson, who lost $1.5 billion at Barings Bank, resulting in collapse in 1995.
Further reading:
French audit body reportedly fingers central bank in SocGen case
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