ECB Slaps JPMorgan With Record Fine Over Misreported Capital Data

The European Central Bank has fined JPMorgan Chase €12.2 million after concluding that the lender submitted inaccurate risk figures over several years.

The regulator said the bank, between 2019 and 2024, wrongly categorised certain transactions and omitted others from its reporting framework. This led to an inflated picture of the institution’s capital buffers, suggesting its financial cushion was stronger than it actually was.

According to the ECB, the breaches were the result of serious shortcomings in internal systems and oversight. The central bank noted that the lender’s control processes failed to flag the discrepancies early enough.

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Banking rules require institutions to hold sufficient liquid assets relative to their risk exposure. By understating the scale of risky positions, the bank may have been able to channel additional funds into other investments.

The penalty is the largest financial sanction imposed so far by the ECB.

The decision follows a separate enforcement action in which the regulator fined French banking group Crédit Agricole €7.55 million for taking too long to assess climate-related financial risks after being instructed to do so.

Reacting to the ruling, JPMorgan said it had identified the reporting issues itself and disclosed them to supervisors. The bank added that the problems have since been corrected and emphasised that its overall capital position remains strong.

The fine highlights the ECB’s firmer supervisory stance as it pushes for improved transparency and stronger risk controls across Europe’s banking sector.