ECB concludes asset quality review of J.P. Morgan SE

6 December 2024

• Asset quality review conducted after bank classified as significant
• Exercise focused on market and credit risk
• No capital shortfalls identified

The European Central Bank (ECB) today published the results of its asset quality review (AQR) of J.P. Morgan SE. The bank was classified as significant and is therefore now directly supervised by the ECB.

Supervisors carry out AQRs to review banks’ asset valuations from a prudential perspective, increase transparency regarding their exposures, and assess the adequacy of their capital levels. They take each bank’s AQR results into account in the Supervisory Review and Evaluation Process (SREP), which assesses a bank’s individual risk profile.

The AQR for J.P. Morgan SE focused on market and credit risk.

The results of the AQR show that J.P. Morgan SE does not face a capital shortfall, as its Common Equity Tier (CET1) ratio does not fall below the 8% threshold retained from previous exercises. A bank’s CET1 ratio is a key measure of its financial soundness. The bank consented to the results being disclosed.

More detailed results and information on the outcome of this exercise can be found on the ECB’s banking supervision website.

For media queries, please contact Ettore Fanciulli, tel.: +49 172 2570 849.

Notes

• Asset quality reviews are performed on all banks recently classified or likely soon to be classified as significant, but can also be carried out on an ad-hoc basis.