EBF: Europe's banks on steady path towards robust capital levels

03 October 2012

On publication of the results of the EBA's Basel III monitoring exercise, the EBF highlights that EU banks are progressing steadily towards robust capital levels despite the ongoing debt crisis, and that they are showing their willingness to comply with the Basel III requirements.

The results of the Basel III monitoring exercise show a great leap towards strong capitalisation of European banks, with large banks showing a 6.9 per cent ratio of the highest quality capital and smaller banks a 7.2 per cent in the same metric. The EBA has conducted the exercise with 156 European banks applying the safer Basel III rules to the data as of December 2011.

The strengthening of the capital ratio of European banks is based on capital of the highest quality, i.e. common equity and reserves, according to the stricter definition of capital in Basel III.

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