Basel III Monitoring Report October 2019 (December 2018 data).
This report presents the results of the Basel Committee's latest Basel III monitoring exercise, based on data as of 31 December 2018. Through a rigorous reporting process, the Committee regularly reviews the implications of the Basel III standards for banks, and has been publishing the results of such exercises since 2012. The report sets out the impact of the Basel III framework that was initially agreed in 2010 as well as the effects of the Committee's December 2017 finalisation of the Basel III reforms. For the first time, it also reflects the finalisation of the market risk framework published in January 2019.
Data are provided for a total of 181 banks, including 105 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 all 29 institutions that have been designated as global systemically important banks (G-SIBs). The Basel Committee's sample also includes 76 "Group 2" banks (ie banks that have Tier 1 capital of less than 3 billion or are not internationally active).
The final Basel III minimum requirements are expected to be implemented by 1 January 2022 and fully phased in by 1 January 2027. On a fully phased-in basis, the capital shortfalls at the end-December 2018 reporting date are 23.5 billion for Group1 banks at the target level. These shortfalls are almost 75% smaller than in the end-2015 cumulative QIS exercise, thanks mainly to higher levels of eligible capital. For Group 1 banks, the Tier 1 minimum required capital (MRC) would increase by 3.0% following full phasing-in of the final Basel III standards relative to the initial Basel III standards. This compares with an increase of 3.2% at end-2017.
On average, at end-June 2018, the total change in Tier1 MRC at the target level was higher at 5.3% for Group1 banks. This higher increase was largely driven by the higher market risk impact prior to the application of the recalibrated 2019 standard.
The report also provides data on the initial Basel III minimum capital requirements, total loss-absorbing capacity (TLAC)and Basel III's liquidity requirements.
- Publication Date: October 2019
- Publication Type: Qis
- Publication Status: Superseded
- Publication Category: Quantitative Impact Study
- Number of Pages: 189
- Keywords: Quantitative Impact Study, Basel III
For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.
The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).