The European Central Bank announced on Thursday that JPMorgan Chase's European branch has been fined €12.18 million ($14.32 million) for incorrectly calculating its risk-weighted assets, leading to a misstatement of its capital requirements.

According to the ECB, from 2019 to 2024, the bank reported lower risk-weighted assets than required. This discrepancy arose because the bank misclassified corporate risk exposures for 15 consecutive quarters and applied lower credit risk weights than stipulated by banking regulations.

The ECB further noted that the bank improperly excluded certain trades when calculating its risk-weighted assets, a decision that may be subject to challenge in the European Union's courts.

JPMorgan Chase acknowledged the penalty and stated that it has already implemented remedial measures.

A spokesperson for the bank said that JPMorgan Securities proactively identified and self-reported the issues, which have now been fully resolved. The spokesperson added that JPMorgan Securities has consistently maintained a strong capital buffer, and its robust, prudent approach to capitalization remains unchanged.