The European Central Bank announced on 19 February 2026 that it had imposed two separate administrative penalties totalling €12.18 million on J.P. Morgan SE, finding that the Frankfurt-based subsidiary of JPMorgan Chase had misreported risk-weighted assets across two distinct categories over extended periods.
The first penalty, amounting to €10,150,000, relates to credit risk. The ECB found that J.P. Morgan SE misclassified corporate exposures and applied lower credit-risk weights than applicable regulations required across 15 consecutive quarters. The second penalty of €2,030,000 addresses credit valuation adjustment risk, where the bank unduly excluded certain transactions from its CVA risk calculations across 21 consecutive quarters, understating its capital requirements over that period.
SEVERITY OF BREACHES CLASSIFIED BY THE REGULATOR
The ECB classified the credit risk breach as 'severe' and the CVA breach as 'moderately severe'. The ECB said the breaches were committed with serious negligence.
J.P. Morgan SE can challenge the decision before the Court of Justice of the European Union.