The Basel Committee on Banking Supervision has published its latest Basel III monitoring report based on data as of 30 June 2017. The report includes a special feature on the results on the impact of the final standards on securitisation including the July 2016 revisions on simple, transparent and comparable transactions.

In summary the report finds that:

  • compared with the previous reporting period the average Common Equity Tier 1 (CET1) capital ratio under the fully phased-in Basel III framework has increased from 12.3% to 12.5% for Group 1 banks and from 13.4% to 14.7% for Group 2 banks;
  • all Group 1 and Group 2 banks (including all 300 global systemically important banks) would meet the CET1 minimum capital requirement of 4.5% and the CET1 target level of 7.0%;
  • applying the 2022 minimum requirements, 10 of the 25 G-SIBs reporting total loss-absorbing capacity data have a combined shortfall of €109 billion, compared with €116.4 billion at the end of December 2016; and
  • group 1 banks’ average liquidity coverage ratio (LCR) improved by 2.6 percentage points to 134% while the average net stable funding ratio (NSFR) increased from 115.8% to 116.9%. For Group 2 banks, there was a stronger increase for both LCR and NSFR.

Group 1 banks are those that have Tier 1 capital of more than €3 billion and are internationally active. All other banks are considered Group 2 banks.

The European Banking Authority has also published its latest report of the CRD IV – CRR / Basel III monitoring exercise on the European banking system.

View Basel III Monitoring Report, 6 March 2018

View The EBA CRD IV – CRR / Basel III monitoring exercise shows further improvement of EU banks capital leverage and liquidity ratios, 6 March 2018