The ECB fined 29 banks, such as Santander and BBVA, for failing to meet minimum reserves

Frankfurt (Germany) (EFE). – The European Central Bank (ECB) has sanctioned nearly 500,000 euros since September last year on 29 banks, including subsidiaries of Santander and BBVA, for failing to meet the minimum reserves they are required to deposit. in the institution.

According to ECB data provided by Expansión, the fines range from 201.38 euros from Germany’s Sparkasse Olpe-Drolshagen-Wenden to 331,378.34 euros from BMW Bank, representing small amounts compared to the large sums these entities typically move.

In total, the ECB imposed sanctions on 29 companies, including BBVA and Santander Consumer Alemanias, which were fined €5,545.47 and €3,855.13 respectively.

The sanctions have been in effect since September 19, when the ECB fined the Latvian branch of OP Corporate Bank 9,642.22 euros, until March 12 – 4,660.72 euros, which it imposed on the Austrian branch of LGT Bank.

Mandatory funds

Minimum reserves are the level of funds that business organizations must maintain in accounts with central banks. They are set for a period of six to seven weeks and are calculated as 1% of the specific liabilities on their balance sheets.

Until October 2022, the interest rate paid on these reserves was the same as on main financing operations, but it was subsequently reduced and was set at 0% in July 2023, meaning that the ECB stopped rewarding them .

If minimum reserve requirements are not met, the ECB imposes sanctions proportional to the deficit, so based on the amounts imposed, these fines are a consequence of calculation errors made by the institutions in managing the money they deposit in Frankfurt.