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On the basis of estimates, the European Central Bank (ECB) has set the fees for its prudential supervision of the banking system for 2018 at €474.8 million. Along with a surplus of €27.7 million carried over from 2017, the fees will cover the expected total supervisory expenditure for 2018 of €502.5 million.
Some 90% of the fees will be paid by significant banks and the remaining 10% by less significant banks.
The estimate is higher than that for 2017 (which was €425 million after taking into account an unspent surplus of €41.1m carried forward from 2016), reflecting both external and internal factors and different supervisory priorities identified by the ECB for 2018. These factors include the United Kingdom’s withdrawal from the EU (Brexit) and the costs associated with the ECB’s involvement in conducting the European Banking Authority’s biennial supervisory stress tests for significant banks in 2018. The 2018 budget for the ongoing multi-annual targeted review of internal models (TRIM) remains stable relative to 2017.
Individual fees for each bank will be determined according to the bank’s importance and risk profile, using annual fee factors supplied by all supervised banks with a reference date of 31 December of the preceding year.
Banks will receive their individual fee notices in October 2018.