ECB sets supervisory fees at €474.8 million for 2018
- Total expenditure on supervision in 2018 estimated at €502.5 million, partially covered by €27.7m surplus not spent in 2017
- Expenditure increase includes costs associated with Brexit and biennial stress tests
- ECB’s ongoing review of internal models still a major component
On the basis of estimates, the European Central Bank (ECB) has set the fees for its prudential supervision of the banking system for 2018 at €474.8 million. Along with a surplus of €27.7 million carried over from 2017, the fees will cover the expected total supervisory expenditure for 2018 of €502.5 million.
Some 90% of the fees will be paid by significant banks and the remaining 10% by less significant banks.
The estimate is higher than that for 2017 (which was €425 million after taking into account an unspent surplus of €41.1m carried forward from 2016), reflecting both external and internal factors and different supervisory priorities identified by the ECB for 2018. These factors include the United Kingdom’s withdrawal from the EU (Brexit) and the costs associated with the ECB’s involvement in conducting the European Banking Authority’s biennial supervisory stress tests for significant banks in 2018. The 2018 budget for the ongoing multi-annual targeted review of internal models (TRIM) remains stable relative to 2017.
More information on the components of the total annual fees can be found on the ECB’s banking supervision website.
Individual fees for each bank will be determined according to the bank’s importance and risk profile, using annual fee factors supplied by all supervised banks with a reference date of 31 December of the preceding year. The supervisory fee is set at the highest level of consolidation within Member States participating in the Single Supervisory Mechanism. It comprises a minimum fee component for all banks, reflecting 10% of the amount to be recovered, and a variable fee component for the allocation of the residual 90% of the costs. For the smallest significant banks, with total assets below €10 billion, the minimum fee component is halved.
Banks will receive their individual fee notices in October 2018.
For media queries, please contact Uta Harnischfeger, tel.: +49 69 1344 6321