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ECB ups supervision levy on banks to pay for risk review
April 28, 2017 / 1:38 PM / 3 months ago

ECB ups supervision levy on banks to pay for risk review

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FILE PHOTO: European Union (EU) flags fly in front of the European Central Bank (ECB) headquarters in Frankfurt, Germany, December 3, 2015.Ralph Orlowski/File Photo

FRANKFURT (Reuters) - The European Central Bank has raised by 10 percent the annual fee it levies on euro zone lenders for supervising them, so that it can hire more staff and pay for a review of the models that large banks use to gauge risk, it said on Friday.

Some lenders, particularly in Germany, have complained of excessive requests for information and higher costs since the ECB took over as the euro zone's top banking watchdog in late 2014, tasked with cleaning up the sector.

Euro zone banks will be charged a total 425 million euros (355.49 million pounds) for this year, up by just over 10 percent compared to what the ECB spent on banking supervision in 2016.

Banks that are directly on the ECB's watch will foot 92 percent of the bill, with smaller firms supervised by national authorities paying for the balance.

"Predominantly, the increase relates to work associated with the targeted review of internal models (TRIM)," the ECB said.

Ratings agency Moody's said last month TRIM could result in the ECB demanding that banks hold more capital against the risk they take.

The ECB spent 382.2 million euros on supervising banks last year, 41.1 million euros less than it had expected.

(This version of the story corrects "billion" to "million" in last paragraph)

Reporting By Francesco Canepa; Editing by Catherine Evans

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