Published by Global Banking & Finance Review®
Posted on February 19, 2026
1 min readLast updated: April 3, 2026
Add as preferred source on GoogleECB fined JPMorgan’s European arm €12.18m for understating risk‑weighted assets by misclassifying corporate exposures over 15 quarters. The ruling cites excluded transactions and may be appealed at the EU’s top court.
FRANKFURT, Feb 19 (Reuters) - The European Central Bank fined JPMorgan's European arm 12.18 million euros ($14.32 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 capitalization remains unchanged."
($1 = 0.8506 euros)
(Reporting by Balazs Koranyi; Editing by Sharon Singleton and Nia Williams)
The ECB fined JPMorgan’s European arm €12.18 million for misreporting capital requirements by understating risk‑weighted assets over multiple quarters.
According to the ECB, the bank misclassified certain corporate exposures and applied lower risk weights than allowed, and also excluded some transactions from RWA calculations.
Yes. The ECB’s decision may be challenged at the Court of Justice of the European Union under the conditions and time limits set by EU law.
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