May 8, 2019 1:50 pm

Because of Brexit: ECB banking supervision is becoming more expensive

The costs of supervising the financial institutions in the EU region will amount to around € 576 million in the current year – around 20 percent above the 2018 figure. This was announced by the ECB in Frankfurt last week. The main reason for the increase is mentioned by the European Central Bank as the additional staff costs of banking supervision. The ECB needs additional staff to control the financial institutions that are relocating or expanding their headquarters due to Brexit.

The costs of banking supervision is determined by the size and risk profile of each bank and has been estimated in advance. Due to the disparities between the estimate and the actual costs, the central bank is considering charging the fees in the future only at the end of the accounting period. The fee notice for 2019 will reach the banks at the beginning of the fourth quarter. Reuters

This post was written by Jens Secker

(Image rights: Creative Studio)

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