The European Central Bank penalized JPMorgan Chase's European branch for breaching capital requirements reporting.

The European Central Bank has imposed two administrative penalties on J.P. Morgan's European branch, totaling 12.18 million euros, for misreporting risk-weighted assets. The ECB stated that from 2019 to 2024, the bank reported risk-weighted assets lower than the actual amount that should have been reported. The violations include: misclassifying the company's risk exposure for 15 consecutive quarters, applying credit risk weights lower than regulatory requirements; improperly excluding certain trades when calculating risk-weighted assets corresponding to credit valuation adjustments for 21 consecutive quarters. The bank submitted incorrectly calculated data to the ECB, leading the ECB to be unable to fully understand its risk situation.