EBA reports on CRD 4/Basel III monitoring exercise as at 31 December 2016

20/09/2017 | Clifford Chance

The European Banking Authority (EBA) has published its twelfth report setting out the results of its monitoring exercise relating to the Capital Requirements Directive (CRD 4) and Regulation (CRR), as well as Basel III. The EBA has published the results of its monitoring for banks across the EU as at 31 December 2016, which has been run in parallel with the exercise carried out at a global level by the Basel Committee on Banking Supervision (BCBS).

Overall, the EBA results of this exercise showed:

  • there is a total average Common Equity Tier 1 (CET1) ratio of 13.4%;
  • only 2.3% of sampled banks would be constrained by the minimum leverage ratio requirement of 3% additionally to risk-based minimum requirements;
  • the average liquidity coverage ratio (LCR) is 139.5%;
  • 99.2% of sampled banks show an LCR above the full implementation minimum requirement applicable from January 2018 (100%); and
  • based on Basel III standards, in the absence of a finalised EU definition, the average net stable funding ratio (NSFR) is 112.0%.