Total annual fees
The ECB levies an annual supervisory fee on all supervised banks to cover its costs in relation to banking supervision.
The total amount of annual supervisory fees is published by 30 April each year in an ECB decision.
What does the fee cover?
The total amount of annual supervisory fees covers the ECB’s expenditure in relation to its supervisory tasks for the relevant fee period, i.e. for that particular year. It consists of:
- the estimated total annual expenditure for the year
- the surplus (or deficit) from the previous year, if any, that will be refunded (or charged)
The total amount of annual supervisory fees also includes:
- any amounts received or refunded in the context of Article 7 of the ECB Regulation on supervisory fees relating to changes at the highest level of consolidation, such as the authorisation of new supervised banks or banking groups, the withdrawal of authorisation, or changes in status from significant to less significant or vice versa
- any fees related to previous fee periods that were not collectible
- any interest payments received for late payment by the fee debtor
Total annual expenditure
The ECB’s annual expenditure for banking supervision primarily consists of costs directly related to its supervisory tasks:
- direct supervision of significant banks or banking groups
- oversight of the supervision of less significant banks or banking groups
- performance of horizontal tasks and specialised services
It also includes costs indirectly related to the ECB’s supervisory tasks, such as shared services provided by the ECB’s support business areas, including premises, human resources management and information technology (IT) services.
What does the annual expenditure cover?
Supervised banks or banking groups are charged annually using an estimate of the ECB’s costs for carrying out its supervisory tasks in that particular year, broken down into three main categories:
- salaries and benefits
- rent and building maintenance
- other operating expenditure
Salaries and benefits comprise remuneration, overtime, allowances and post-employment benefits for supervisors and staff of the shared services. Operating expenditure includes expenses such as consultancy, IT services, statistical services, depreciation for fixed assets (other than premises-related), business travel and training.
Surplus or deficit
The total amount levied by the ECB must cover, but not exceed, the expenditure incurred by the ECB in the relevant fee period in relation to its supervisory tasks. As the ECB’s decision on the total annual supervisory fees is based on an estimate, a surplus or deficit between the amount collected and the actual expenditure incurred can arise. The surplus or deficit from the previous year, if any, is deducted from or added to the total amount of annual supervisory fees for the following year.
Each supervised bank or banking group must pay a fee for the year, or part of the year, in respect of which it is supervised. Where changes in a bank’s or banking group’s situation occur after the ECB has finalised the individual supervisory fee notice, the adjustment will be reflected in the total amount of annual supervisory fees for the next fee period. Changes in situation include authorisation of new supervised banks or banking groups, the withdrawal of authorisation, or changes in status from significant to less significant or vice versa.
The ECB takes all the necessary steps to collect supervisory fees from supervised banks and banking groups. Interest on late payments received and any amounts that were not collectible will be taken into account in determining the total amount of annual supervisory fees for the following year.
The ECB Annual Report on supervisory activities contains information on the actual expenditure on supervisory tasks and describes the supervisory fees framework for that reporting period.