The Basel Committee has published the result of its Basel III monitoring exercise. The analysis is based on the rigorous reporting framework established by the Committee to review of the effect of the Basel III standards on financial markets. 210 banks participated in the study, including 101 Group 1 banks (capital in excess of €3bn).

The study concluded that the average Common Equity Tier 1 (CET1) capital ratio of Group 1 banks was 8.5%, compared to the 4.5% minimum under the Basel III requirements. For all participating Group 1 banks to reach the 4.5% target, an increase of €3.7 billion in CET1 would be required. In relation to Group 2 banks, additional capital of €4.8bn would be needed to meet the 4.5% CET1 ratio.