ECB hikes banking supervision bill over Brexit moves

The headquarters of the European Central Bank (ECB) illuminated with a giant euro sign at the start of the ‘Luminale, light and building’ event in Frankfurt March 12, 2016. — Reuters pic
The headquarters of the European (ECB) illuminated with a giant euro sign at the start of the ‘Luminale, light and building’ event in Frankfurt March 12, 2016. — Reuters pic

FRANKFURT, April 30 — The European Central Bank (ECB) today upped the supervisory fees it charges major banks this year, as its task has swelled with moving to the eurozone from London in response to Brexit.

Lenders’ moves following Britain’s decision to leave the European Union prompted the ECB to set the charges at €576 million (RM2.67 billion) this year, a 21 per cent hike compared to the €475 million it charged in 2018.

The ECB says the sharp increase in anticipated annual fees “mainly reflects staff increases for banks relocating or growing as a result of the United Kingdom’s withdrawal from the EU (Brexit) and the corresponding preparatory assessments.”

Around 91 per cent of the total fees will be met by the 119 major banks within the eurozone area who are directly supervised by the ECB, with the other nine per cent borne by banks mostly overseen by national authorities.



The restructuring of the cooperative sector in Italy will also generate additional costs.

The increase in the fee this year is also intended to cover the deficit of €15.3 million recorded in 2018 by the ECB’s supervisory arm. — AFP

Source: The Malay Mail Online





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