Tuesday 30 April 2019 3:41 pm

European Central Bank hikes supervision fees by 21 per cent as Brexit takes financial toll


I'm a freelance journalist covering a wide variety of beats concerning business, politics and finance.

I'm a freelance journalist covering a wide variety of beats concerning business, politics and finance.

The European Central Bank (ECB) today increased supervisory fees by 21 per cent as it seeks to cover higher than expected costs to prepare for Brexit.

Read more: Euro falls as ECB chief Draghi bearish on Eurozone economy

The hike amounts to an estimated €576m charge on banks this year, up from €502.2m in 2018, as a result of steeper costs this year and a €15.3m deficit that resulted from higher than expected costs from last year.


Banks directly supervised by the ECB will pay 91 per cent of the fees, the ECB said.

The bank stated that the increase was principally reflecting “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”.

“In addition, the ECB is currently undertaking a comprehensive assessment of six Bulgarian banks with a view to conducting negotiations on close cooperation with Bulgaria,” it said.

Read more: Eurozone economy shows stronger-than-expected growth in first quarter

“Moreover, the restructuring of the Italian cooperative banking sector will lead to additional costs.”

 

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