Consultants set for €500m fee windfall in European bank audit

by Naomi Rainey

More from this author

21 Aug 2014

  • Comments

CONSULTANTS working with European regulators on a wide-reaching bank audit could see a fee windfall of almost €500m (£400m).

The European Central Bank and eight national regulators are in the final stages of a review of the 128 biggest lenders in the region, which will see external advisers net €487.7m in fees, research by the Financial Times found. 

The banks themselves could end up footing a large proportion of these fees, the newspaper said.

Regulators are taking steps to restore trust in the banking sector following a turbulent five years that saw global recession and the eurozone crisis disrupt economies throughout Europe. The results are due to be announced in October; institutions will then have two weeks to plug any holes in their balance sheets.

Several regulators plan to pass the cost of hiring consultants for the audit work on to the banks involved. However, Banca d'Italia and Banque de France are planning to absorb the costs themselves.

The amount spent on external advice varies greatly, according to FT research, with Germany's BaFin spending around €240m during the assessment process. By comparison, Spain has spent just €15.9m.

The ECB declined to comment on the newspaper's estimates, but said the costs were "necessary investment to restore confidence, increase transparency and achieve repair where necessary".

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.