European Central Bank Banking Supervision has imposed periodic penalty payments of EUR 187,650 on ABANCA Corporación Bancaria, S.A. for failing to comply with a binding requirement to conduct a materiality assessment of its climate-related and environmental (C&E) risks. The requirement, set in an ECB decision of 1 December 2023, required the bank to reinforce its identification of material C&E risks and provided for penalties if it did not comply by 31 March 2024. ABANCA did not sufficiently assess and document the materiality of its C&E risks and remained in breach for 65 full days in 2024. In setting the level of periodic penalty payments, the ECB considers the materiality of the infringement, the duration of the breach and the supervised entity’s daily turnover, with penalties accruing per day of infringement. ABANCA may challenge the ECB’s decision before the Court of Justice of the European Union.
European Central Bank - Banking Supervision 2025-11-10
European Central Bank Banking Supervision imposes EUR 187,650 periodic penalty payments on ABANCA for failing to identify climate risks by the deadline
The European Central Bank Banking Supervision imposed periodic penalty payments of EUR 187,650 on ABANCA Corporación Bancaria, S.A. for failing to assess its climate-related and environmental risks. The penalties were based on the infringement's materiality, breach duration, and the bank's daily turnover. ABANCA can challenge the decision before the Court of Justice of the European Union.