Finance
ECB fines JPMorgan 12.2 million euros for misreporting capital requirements
Published by Global Banking & Finance Review®
Posted on February 19, 2026
1 min readLast updated: February 19, 2026
Quick Summary
ECB 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.
ECB Penalizes JPMorgan €12.18M for Misreporting Capital Requirements
ECB Penalty and Case Summary
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.
Timeframe: 2019–2024
Misreporting of Risk-Weighted Assets
"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."
Court of Justice of the EU
Right to Appeal
Transactions Improperly Excluded
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.
Exchange Rate Reference
($1 = 0.8506 euros)
(Reporting by Balazs Koranyi; Editing by Sharon Singleton)
Key Takeaways
- •ECB fined JPMorgan’s European arm €12.18 million for misreporting capital needs.
- •The bank understated risk-weighted assets by misclassifying corporate exposures for 15 quarters (2019–2024).
- •Certain transactions were improperly excluded from RWA calculations, the ECB said.
- •The decision can be challenged at the Court of Justice of the European Union.
- •The case underscores strict EU supervision of accurate RWA and capital reporting.
Frequently Asked Questions about ECB fines JPMorgan 12.2 million euros for misreporting capital requirements
1What is the main topic?
The ECB fined JPMorgan’s European arm €12.18 million for misreporting capital requirements by understating risk‑weighted assets over multiple quarters.
2Why was JPMorgan fined?
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.
3Can JPMorgan appeal the decision?
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.
