The Dutch authorities have slapped the Malta-based Novum Bank with a €1.75 million fine, according to reports.

The bank was slapped with a fine after it had offered so-called short-term loans without a permit, media reports in the Netherlands said.

The company provided 140,000 short-term loans in various countries, for interest rates above the legally-permitted 14 per cent rate, the reports said.

One customer who borrowed €200 for 30 days had to repay a total of €252 in interest rates, the reports read.

The Dutch financial regulator had described the violation as "above average serious and culpable", however, it did not impose the maximum penalty.

The Ta' Xbiex bank is licensed by the Malta Financial Services Authority to operate outside Malta. The bank has two lines of products: card/store value and micro-lending and has group companies in Germany, Romania and the Netherlands, according to its website.

Novum Bank had also been slapped with a €80,500 fine by the MFSA, after it was found to be in breach of Article 11 of the Banking Act. Novum Bank did not appeal the fine, however, it contested the allegations made by the Dutch regulator. 

The operation was done under brand name Cashper between September 2013 and June 2016. During that time, the company provided short-term loans in multiple European countries, Dutch website ad.nl reported.

The MFSA was not aware of the subsidiary and had no role in supervising it, the news portal said.

The bank is reportedly operated by businessman and billionaire Marcel Boekhoorn, who recently incorporated Dutch retail chain HEMA.