- Basel III risk-based capital ratios increased in the second half of 2024.
- Banks’ leverage ratio and Net Stable Funding Ratio remain stable while Liquidity Coverage Ratio decreased.
Basel III risk-based capital ratios increased while leverage ratios and Net Stable Funding Ratios (NSFRs) remained stable for large internationally active banks in the second half of 2024, according to the latest Basel III monitoring exercise, released by the Bank for International Settlements (BIS).
At the end of the second half of 2024, the average impact of the fully phased-in final Basel III framework on the Tier 1 minimum required capital (MRC) of Group 1 banks was +2.1%, compared with +1.8% at end-June 2024. Group 1 banks report no regulatory capital shortfall, compared with €0.9 billion ($1.0bn) at end-June 2024.
The monitoring exercise also collected bank data on Basel III liquidity requirements. The weighted average Liquidity Coverage Ratio (LCR) decreased compared with the previous reporting period to 134.8% for Group 1 banks. Three Group 1 banks reported an LCR below the minimum requirement of 100%.
The weighted average NSFR was stable at 123.7% for Group 1 banks. All banks reported an NSFR above the minimum requirement of 100%.