March 06, 2018

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. 


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Keywords: Europe, Banking, Basel III, CRR, CRD IV, Monitoring, LCR, NSFR, CET1, EBA

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