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.
Keywords: Europe, Banking, Basel III, CRR, CRD IV, Monitoring, LCR, NSFR, CET1, EBA
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.