ECB fines JPMorgan’s European arm 12.2 million euros for misreporting capital requirements

[FRANKFURT] The European Central Bank fined JPMorgan’s European arm 12.18 million euros (S$18.2 million) for misreporting capital requirements after it wrongly calculated risk-weighted assets, the ECB said in a statement on Thursday.

“Between 2019 and 2024, the bank reported lower risk-weighted assets than it should have done,” the ECB said. “This occurred because, for 15 consecutive quarters, the bank misclassified corporate exposures and applied a lower risk-weight for credit risk to them than what banking rules prescribe.”

The bank also unduly excluded certain transactions when calculating risk-weighted assets, the ECB added in a decision that may be challenged at the Court of Justice of the European Union.

JPMorgan said it acknowledged the fine and has remedied the issue.

“J.P. Morgan SE proactively identified and self-reported the issues, which have now been fully remediated,” a spokesperson said in a statement.

“JPMSE has consistently maintained strong capital buffers, and our robust, prudent approach to capitalisation remains unchanged.” REUTERS