Bank BNP Paribas Fortis has to pay European fine of 10m euros

The European Central Bank (ECB) has imposed an administrative penalty of 10.4 million euros on BNP Paribas Fortis for deliberately reporting wrong figures about its risk profile for years.

Between 2014 and 2021, for 31 consecutive quarters, BNP Paribas Fortis understated the risk-weighted assets of “its subsidiary in Belgium”, according to the ECB. As a result of underestimating its risk-weighted assets, the bank didn’t calculate its capital requirements properly and reported higher capital ratios than it should have. Capital ratios are key indicators of a bank’s capital strength and its ability to absorb losses.

The bank relied on the use of internal models to calculate those risk-weighted assets, although it had identified severe deficiencies, the ECB said.

“The bank knowingly reported wrongly calculated figures to the competent authorities, thereby preventing them from having a comprehensive view of its risk profile,” it said in a press release. “The bank only informed the ECB once the new models had been developed and submitted for regulatory approval, seven years after the deficiencies were identified.”

BNP Paribas Fortis can challenge the ECB’s decision before the Court of Justice of the European Union.

^{© BELGA PHOTO DOMINIQUE FAGET / AFP}