ECB Annual Report on supervisory activities

Total amount levied
€404.5 million
Fees levied by the <strong>ECB</strong>
for conducting
supervisory tasks
In 2016 the <strong>ECB</strong> levied a total amount of €404.5 million in fees for the expenditure it
incurred by conducting its supervisory tasks. This is based on the expected
expenditure for the full year 2016, amounting to €423.2 million, as adjusted for: (i)
the surplus of €18.9 million carried forward from the 2015 fee period; (ii) other
income related to interest on late payments of €0.1 million; and (iii) €0.3 million
reimbursed to individual banks for the 2014-2015 fee period.
The amount to be recovered via annual supervisory fees is split into two parts. This
split is related to the status of supervised entities as either significant or less
significant, reflecting the varying degrees of supervisory scrutiny by the <strong>ECB</strong>. The
amount is then determined on the basis of the costs incurred by the business areas
of the <strong>ECB</strong> that are responsible for the supervision of significant supervised entities
and those overseeing the supervision of less significant supervised entities,
respectively.
Table 8
Supervisory fees split between significant institutions and less significant institutions
(€ millions)
Actual income
2016
Estimated income for
banking supervision
tasks
2016
Actual income
2015
Actual income
2014 56
Supervisory fees 382.2 423.2 277.1 30.0
of which:
Fees on significant entities or significant groups 338.4 376.0 245.6 25.6
Fees on less significant entities or less significant groups 43.7 47.2 31.5 4.4
Other 0.0
Total income from banking supervision tasks 382.2 423.2 277.1 30.0
As explained in Section 5.1, there is a surplus of €41.1 million between the actual
expenditure incurred for banking supervisory tasks in 2016 and the amount levied in
the same year. This surplus will be offset in full against the total amount to be levied
in 2017. It will be allocated to the categories of significant institutions and less
significant institutions based on the actual costs that were allocated to the relevant
functions in 2016.
Individual supervisory fees
At bank level, the fees are calculated according to a 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. The supervisory fee calculated per bank
56
For 2014, the <strong>ECB</strong> recovered via supervisory fees its banking supervision-related costs for the period
commencing in November 2014, which is when it assumed its supervisory tasks.
<strong>ECB</strong> <strong>Annual</strong> <strong>Report</strong> on supervisory activities 2016 − <strong>Report</strong>ing on budgetary consumption 68