The European Central Bank’s banking regulator imposed two fines totaling around 12.2 million euros on the US bank JPMorgan.
The ECB announced in Frankfurt that the reason was incorrect information about capital requirements.
The bank reported lower so-called risk-weighted assets between 2019 and 2024 than it should have submitted to the banking supervisors. The ECB, which monitors the largest banks in the euro area, criticized JPMorgan SE for preventing supervisors from getting a comprehensive overview of its risk profile with its incorrectly calculated figures.
Risk-weighted assets are a measure of the risks a bank has on its books. They serve as a basis for banks to calculate their capital requirements. Because the risk-weighted assets were reported too low, the bank reported higher capital ratios than was appropriate, the ECB said. Ratios are key indicators of banks’ capital strength and their resilience to absorb losses.
JPMorgan recently had problems with supervisors
The ECB complained that the bank had committed the violations with gross negligence due to “obvious deficiencies in its internal processes.” Internal controls did not detect the violations in a timely manner. The US bank may appeal the decision to the Court of Justice of the European Union.
A JPMorgan spokesman said the bank “proactively identified and self-reported” the problems. They have now been completely resolved. The bank has “maintained strong capital buffers throughout and our sound, prudent approach to capital levels remains unchanged.”
JPMorgan recently had problems with supervisors. In the fall, the German financial regulator Bafin imposed a record fine of around 45 million euros on the Americans for deficiencies in money laundering prevention.
In pre-market trading on the NYSE, JPMorgan shares temporarily traded 0.23 percent higher at $308.76.
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