Credit Suisse, the troubled Swiss bank, has been placed on a watchlist by the UK’s financial watchdog over concerns it has not done enough to improve its culture and financial and risk controls.
A letter from the Financial Conduct Authority (FCA), seen by the Financial Times, said it wanted to see evidence it is improving its accounting accountability and halting the string of scandals that have rocked the bank.
The FCA stated the cultural issues include a lack of internal challenges to potentially high-risk deals.
Credit Suisse was also accused of a "lack of curiosity" over what had caused its run of losses and scandals and the watchdog demanded a review of the effectiveness of its board, risk and audit committees.
The Swiss bank issued its sixth profit warning in seven quarters last week, saying it expects to lose money both at the group level and at its investment bank in the second quarter
The bank added it is also looking to cut staff across different divisions, including investment banking and wealth management.
Credit Suisse has had a litany of problems over recent years including frequent management departures, fines and huge losses from bankrolling failed inventory business Greensill Capital and hedge fund Archegos Capital Management.
Losses this quarter were blamed on higher litigation provisions and the war in Ukraine.