The EBA has published its first report on the results of the Basel III monitoring exercise, as a follow-up to the comprehensive European quantitative impact study conducted to analyse the impact of the new requirements and published in December 2010. The report summarises the results using consolidated data from European banks as of 30 June 2011.
The monitoring exercise provides an impact assessment of the following aspects:
- changes to banks' capital ratios and estimates of any capital shortfalls
- changes to the definition of capital that result from the new capital standard (Common Equity Tier 1)
- changes in the calculation of risk-weighted assets
- the capital conservation buffer
- the leverage ratio
- the liquidity coverage ratio and the net stable funding ratio.