EBA on CRDIV-CRR/Basel III Monitoring Exercise on EU Banking System
EBA published the thirteenth report on the Capital Requirements Directive IV-Capital Requirements Regulation (CRD IV-CRR)/Basel III monitoring exercise on the European banking system using data as of June 30, 2017. Overall, the results show a further improvement in capital positions European banks, with a total average common equity tier 1 (CET1) ratio of 13.8%.
The analysis of leverage ratio shows that there has been a continuous increase in the last periods, with the estimated leverage ratio at 5.0%, as of June 2017. The average liquidity coverage ratio (LCR) was 143.1% at the end of June 2017. All banks in the sample show an LCR above the full implementation minimum requirement applicable from January 2018 (100%). The overall average net stable funding ratio (NSFR) is 112.3%, with an overall shortfall in stable funding of EUR 50.9 billion. Compared with the previous periods, NSFR of banks has increased continuously, mainly driven by the increasing amount of available stable funding for both groups. Nearly 81% of the participating banks would already meet the minimum NSFR requirement of 100%.
This exercise presents aggregate data on capital, leverage, and liquidity ratios of EU banks while assuming full implementation of the CRD IV-CRR/Basel III framework. This exercise does not reflect any BCBS standards agreed since the beginning of 2016 or any measures under consideration by BCBS. The exercise includes a sample of 138 banks, including 45 Group 1 banks and 93 Group 2 banks. The Group 1 banks are defined as internationally active banks that have tier 1 capital of more than EUR 3 billion. Group 2 banks are banks that have tier 1 capital of less than EUR 3 billion or are not internationally active.
Related Links
Keywords: Europe, Banking, Basel III, CRR, CRD IV, Monitoring, LCR, NSFR, CET1, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
