The European Banking Authority (EBA) published 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.
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 Governors and Heads of Supervision (GHoS) at 72.5% of the standardised approach requirements.
Press release
Ad Hoc Cumulative Impact Assessment of the Basel reform package
© EBA
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article