The Federal Reserve Bank of New York found some serious oversight in the financial reporting process of Deutsche Bank, the New York Times reported.

The Federal Reserve Bank regulates the Deutsche Bank in the United States, and its recent examination of the German bank showed inaccurate and unreliable procedure in the bank's financial reports that do not comply with the same financial reporting procedures with other U.S. banks.

Like Us on Facebook

Senior vice-president of the New York Federal Reserve Daniel Muccia said that they would have to remedy the reporting structure of the bank due to its sizeable errors.

He added that the bank suffered from the same problem back in 2002, but to this day has not resolved the inaccuracies as it continues to suffer from weak and inadequate internal controls.

The Federal Reserve Bank sent a letter to Deutsche bank in December urging the German bank to fix its financial reporting problems.

The letter also stated that overseas banks based in the U.S. must have the same capital requirement as American banks. The Federal Reserve expects that the capital requirement gets implemented in 2016.

Federal Reserve Bank revealed that Deutsche Bank produced inaccurate regulatory report because of its poor technology infrastructure and that it has ineffective and inadequate internal auditors who made the compliance oversight.

"We have been working diligently to strengthen our systems and controls further and are committed to being best in class," Deutsche spokeswoman Michele Allison said.

Allison added that the bank hired 1,300 new employees and spent over US$1.3 billion in an effort to address its problems.

Deutsche has the smallest capital among other foreign banks in the U.S. and regulators push for them to comply with U.S. standard capital requirement to avoid taxpayer bailouts in case of financial crisis.

Tagsreports, finance, reserve bank, mistakes, errors, banking, US banks