Basel III risk-based capital ratios increase while leverage ratio and Net Stable Funding Ratio remain stable for large internationally active banks in the first half of 2024, latest Basel III monitoring exercise shows

Press release  | 
26 March 2025
  • Basel III risk-based capital ratios increase in the first half of 2024.
  • Banks' leverage ratio and Net Stable Funding Ratio (NSFR) remain stable while Liquidity Coverage Ratio (LCR) decreases slightly.
  • Redesigned dashboards offer new features to explore results.

Basel III risk-based capital ratios increase while leverage ratio and NSFR remain stable for large internationally active banks in the first half of 2024, according to the latest Basel III monitoring exercise, published today.

The report, based on data as of 30 June 2024, sets out trends in current bank capital and liquidity ratios and the impact of the fully phased-in Basel III framework, including the December 2017 finalisation of the Basel III reforms and the January 2019 finalisation of the market risk framework. It covers both large international active banks (Group 1) and other smaller banks (Group 2). See note to editors for definitions.

The implementation of the final elements of the Basel III minimum requirements began on 1 January 2023. At the end of the first 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 +1.9%, compared with +1.3% at end-December 2023. Group 1 banks report a minor regulatory capital shortfall of €0.9 billion, compared with no shortfall at end-December 2023.

The monitoring exercise also collected bank data on Basel III liquidity requirements. The weighted average LCR decreased slightly compared with the previous reporting period to 136% for Group 1 banks. Three Group 1 banks reported an LCR below the minimum requirement of 100%.

The weighted average NSFR was stable at 124% for Group 1 banks. All banks reported an NSFR above the minimum requirement of 100%.

Overview of results

Table 1
  31 December 20231

30 June 2024
Group 1 Of which:
G-SIBs

Group 1

 Of which:
G-SIBs
Current Basel III framework        
CET1 ratio (%) 13.1  12.8

13.4

 13.2
Target capital shortfalls (€ bn)2 0.0 0.0 0.0 0.0
TLAC shortfall 2022 minimum (€ bn) 24.8 24.8 19.4 19.4
Total accounting assets (€ bn) 86,121 59,456 82,626 61,751
Leverage ratio (%)3 6.1 6.1 6.1 6.0
LCR (%) 138.2 135.0 136.0 133.6
NSFR (%) 122.6 122.8 123.6 123.8
Fully phased-in final Basel III framework (2028)        
Change in Tier 1 MRC at the target level (%) 1.3 0.0 1.9 1.5
CET1 ratio (%) 13.5 13.4 13.1 12.9
Target capital shortfalls (€ bn); of which: 0.0 0.0 0.9 0.9
       CET1 0.0 0.0 0.0 0.0
       Additional Tier 1 0.0 0.0 0.0 0.0
       Tier 2 0.0 0.0 0.9 0.9
TLAC shortfall 2022 minimum (€ bn) 31.1 31.1 19.6 19.6
Leverage ratio (%)3 6.1 6.0 6.1 6.0

CET1 = Common Equity Tier 1; G-SIBs = globally systemically important banks; LCR = Liquidity Coverage Ratio; MRC = minimum required capital; NSFR = Net Stable Funding Ratio; TLAC = total loss-absorbing capacity.

1  The values for the previous period may differ slightly from those published in the previous report. This is caused by data resubmissions for previous periods to improve the underlying data quality and enlarge the time series sample as well as by a change in methodology.    2  These use the 2017 definition of the leverage ratio exposure measure.    3  The leverage ratios reflect temporary exclusions from leverage exposures introduced in some jurisdictions.

Source: Basel Committee on Banking Supervision.

The report is accompanied by interactive Tableau dashboards that allow users to explore the results with greater ease and flexibility. A new design makes the dashboards more user-friendly, and the explanatory text summarising the findings was expanded to cover additional topics including market risk, counterparty credit risk and credit valuation adjustment risk.

Note to editors

Through a rigorous reporting process, the Basel Committee regularly reviews the implications of the Basel III standards for banks and has been publishing the results of such exercises since 2012.

The results shown for "current Basel III framework" reflect the current jurisdictional standards that apply to the reporting banks as of 30 June 2024, which reflect different degrees of implementation of the Basel III reforms. The Basel III implementation dashboard provides an overview of Basel III implementation status across jurisdictions. The results shown for "fully phased-in final Basel III framework (2028)" assume that the positions as of 30 June 2024 were subject to the full application of the Basel III standards. That is, they do not account for transitional arrangements set out in the Basel III framework, which expire on 1 January 2028. No assumptions were made about bank profitability or behavioural responses, such as changes in bank capital or balance sheet composition. For that reason, the results of the study may not be comparable with industry estimates.

Data are provided for 176 banks, including 115 large internationally active banks. These "Group 1" banks are defined as internationally active banks that have Tier 1 capital of more than €3 billion and include 29 institutions that have been designated as global systemically important banks (G-SIBs). The Basel Committee's sample also includes 61 "Group 2" banks (ie banks that have Tier 1 capital of less than €3 billion or are not internationally active).

The values for the previous period may differ slightly from those published in the previous report. This is caused by data resubmissions for previous periods to improve the underlying data quality and enlarge the time series sample as well as by a change in methodology as explained in the report.