The European Central Bank (ECB) has fined JPMorgan’s European arm 12.18 million euros ($14.32 million AUD) for misreporting capital requirements. The penalty was levied after the bank incorrectly calculated risk-weighted assets over a sustained period. The ECB announced the fine in a statement released on Thursday.
According to the ECB, JPMorgan reported lower risk-weighted assets than it should have between 2019 and 2024. The bank, for fifteen consecutive quarters, misclassified corporate exposures and applied a lower risk weight for credit risk than prescribed by banking regulations. Furthermore, the ECB stated that the bank unduly excluded specific transactions when calculating risk-weighted assets.
JPMorgan Chase & Co. is a global financial services firm. The company provides investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. JPMorgan has acknowledged the fine and stated that it has taken corrective measures to address the identified issues. A spokesperson for the company said that J.P. Morgan SE proactively identified and self-reported the issues, which have now been fully remediated.
The spokesperson also added that JPMSE has consistently maintained strong capital buffers, and their robust, prudent approach to capitalization remains unchanged. The ECB’s decision can be challenged at the Court of Justice of the European Union. ($1 = 0.8506 euros)
