The European Banking Authority (EBA) has published its full assessment quantifying the impact of the reform package recently agreed by the Basel Committee on Banking Supervision on the European banking system.

Overall, the results, based on data as of 31 December 2015, show that European banks’ minimum Tier 1 capital requirement would increase by 12.9% at the full implementation date. To comply with the new framework, EU banks would need EUR 17.5 billion of additional Common Equity Tier 1 (CET1) capital, and the total capital shortfall would be EUR 39.7 billion. Finally, 20.5% of the EU banks in the sample would be constrained by the output floor, set by the Basel Committee at 72.5% of the standardised approach requirements.

View EBA publishes full impact assessment of Basel reforms on EU banks, 20 December 2017