ECB Annual Report on supervisory activities

is then charged via annual payments payable in the final quarter of each financial
year.
Figure 9
The variable fee component is determined by a bank’s
importance and its risk profile
Supervisory fee
calculated at highest level of consolidation within
participating Member States
Bank’s importance
measured via total assets (TA)
Bank’s risk profile
measured via total risk exposure
(TRE)
importance and risk profile are equally weighted when
calculating the fee
The supervisory fee is set at the highest level of
consolidation within Member States participating in the
SSM. It contains a variable fee component and a
minimum fee component. The latter applies equally to
all banks and is based on 10% of the total amount to be
recovered 57 .
For the calculation of the annual supervisory fees
payable in 2016, the fee debtors submitted information
on the fee factors with a reference date of 31 December
2015 to the NCAs by 1 July 2016. On 8 August 2016
the <strong>ECB</strong> made the submitted fee factors data available
to fee debtors and invited them to comment within five
working days if they considered the data to be incorrect.
The <strong>ECB</strong> then calculated the individual fee per bank
and banking group.
Article 7 of the Fees Regulation provides that the following changes in the situation
of an individual bank require an amendment of the corresponding supervisory fee: (i)
a change in supervisory status of the supervised entity, i.e. the entity is reclassified
from significant to less significant or vice versa; (ii) a new supervised entity is
authorised; or (iii) an existing authorisation is withdrawn. In the course of 2015, such
changes, which resulted in new supervisory fee decisions by the <strong>ECB</strong>, added up to
€0.3 million. That amount was reimbursed in early 2016 and taken into account in
the total amount to be levied as approved in April 2016. Thereafter, additional
amendments to individual supervisory fees levied in the first invoicing cycle
(November 2014 to end-2015) were identified, resulting in a further net refund of
€0.4 million. This amount will be taken into account in the total amount to be levied
on supervised entities in 2017.
These changes primarily concerned less significant institutions, resulting in a smaller
number of LSIs at the highest level of consolidation. As a consequence, in particular
for the minimum fee component, the percentage increase in the individual
supervisory fee payable in 2016 for some individual banks was unavoidably higher
than what may have been expected given the percentage increase in the total
amount to be levied.
The <strong>ECB</strong> is currently processing 2016-related applications for amendments under
Article 7 of the Fees Regulation. The amounts reimbursed or levied will be offset in
full against the total amount to be levied in 2017.
57
For the smallest significant banks, with total assets below €10 billion, the minimum fee component is
halved.
<strong>ECB</strong> <strong>Annual</strong> <strong>Report</strong> on supervisory activities 2016 − <strong>Report</strong>ing on budgetary consumption 69