That feeling when you notice that EU leverage ratio requirements are at risk

This week, the EBA and BCBS published the Basel III monitoring results. They show a further improvement of European banks’ capital positions, largely fulfilling the future regulatory capital requirements, with only a very small number of banks suffering from potential capital shortfalls. I found Figure 9 of the EBA report interesting. It shows the evolution […]

Good luck harmonising European bank capital!

Following up on my post of some days ago on Europe’s efforts to harmonise bank capital, it dawned upon me that this harmonisation plan will probably not go well. Today, Danièle Nouy confirmed there will be a consultation on ECB’s efforts to harmonise Options and National Discretions (ONDs) in the CRR. Consultation, consultation, consultation. Mind […]

Jay, the EBA and BCBS Basel III monitoring results are out!

It is that time of the year: the Basel III monitoring reports are out. The Basel report can be found here. The EBA report can be found here. Highlights from the EBA report: CET1 ratios are steadily increasing – Compared with the previous exercise (reference date June 2014), the average CET1 ratio of Group 1 banks increased by 0.5 […]

An intriguing graph in the BCBS Basel III monitoring report

Leafing through the BCBS Basel III monitoring report, I noticed this graph on page 21. It shows the interaction between the Basel III Tier 1 leverage ratio (horizontal axis) and the Tier 1 risk-weighted capital ratio (vertical axis). Ratios of Group 1 banks are marked with red dots and those of Group 2 banks with […]

Jay, the EBA and BCBS Basel III monitoring results are out

The EBA and the Basel committee just published the Basel III monitoring results. Click here to view the results of the EBA monitoring exercise. Click here to view the results of the BCBS monitoring exercise. Best is to describe the results using graphs, in this case from the EBA report. Note, these are results of […]

Basel’s damning report about EU’s definition of bank capital

Here is the Basel III RCAP report. On first sight, it looks bad: “In view of this, the prudential regulatory framework in the EU and the nine Member States was evaluated to be materially non-compliant with the minimum standards prescribed under the Basel framework.” However, how bad is it? Having skimmed trough the report with […]

EBA and BCBS publish Basel III monitoring results

Both Basel and EBA published the mid-year 2013 Basel III monitoring results. The monitoring rounds show how banks are converging toward the Basel III end-state. EBA’s main findings show that the Common Equity Tier 1 capital ratio (CET1) of the largest internationally-active European banks (Group 1 banks) would be on average 9.1% compared to a ratio of 12% […]

Basel III monitoring results published by the Basel Committee

And a quick follow-up from Basel on capital shortfalls. (Click here for the report.) From the press release: “Data as of 31 December 2012 show that shortfalls in the risk-based capital of large internationally active banks continue to shrink. The aggregate shortfall of Common Equity Tier 1 (CET1) capital with respect to the 4.5% minimum […]

EBA publishes results of the Basel III monitoring exercise as of end 2012

Just a quicky – from EBA: it publishes today its fourth report of the Basel III monitoring exercise on the European banking system. Click here for the full report. “The exercise monitors the impact of the implementation of the Basel III requirements in the EU, based on the assumption of a full implementation of the […]