EBA publishes full impact assessment of Basel reforms on EU banks

20 December 2017

Following up on the cumulative assessment published on 7 December 2017, the European Banking Authority (EBA) published today its full assessment quantifying the impact of the reform package recently agreed by the Basel Committee on Banking Supervision (BCBS) on the European banking system. 
This exercise presents aggregate data on EU banks assuming full implementation of the final Basel III framework, as endorsed by the Group of Central Bank Governors and Heads of Supervision (GHoS), and reflects all the revisions to the credit and operational risk approaches, as well as to the process for the estimation of the leverage ratio (LR). 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 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 GHOS at 72.5% of the standardised approach requirements.  

Notes to the editors

  • The exercise monitors the impact of fully implementing the Basel reform package on banks' minimum required capital, capital ratios (risk-based and non-risk-based) and capital shortfalls;
  • The results of the report are presented separately for Group 1 and Group 2 banks. Group 1 banks are those with Tier 1 capital in excess of EUR 3 billion and are internationally active. All other banks are categorised as Group 2 banks; 
  • The analysis provides separate figures for the sample of global systemically important institutions (G-SIIs). Where applicable, the analysis takes account of G-SIIs capital buffer for the risk-based capital requirements and the leverage ratio requirements;

Press contacts:

Franca Rosa Congiu

E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772