EBA publishes the preliminary impact of the Basel reforms on EU banks capital and updates on liquidity measures in the EU

4 October 2018

On 4 October 2018, the European Banking Authority (EBA) published  two reports, which measure the impact of implementing Basel III reforms and monitor the current implementation of liquidity measures in the EU.

The EBA Basel III capital monitoring report includes a preliminary assessment of the impact of the Basel reform package – as endorsed by the Group of Central Bank Governors and Heads of Supervision (GHoS) – on EU banks assuming its full implementation.

The report on liquidity measures monitors and evaluates the liquidity coverage requirements currently in place in the EU. The EBA estimates that the Basel III reforms would determine an average increase by 16.7% of EU banks’ Tier 1 minimum required capital.  The liquidity coverage ratio (LCR) of EU banks stood at around 145% in December 2017, materially above the minimum threshold of 100%.

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