The EBA published its second mandatory Basel III Monitoring Report

The European Banking Authority (EBA) published on September 26 its second mandatory Basel III Monitoring Report which assesses the impact that Basel III full implementation will have on EU banks in 2028.

According to this assessment, which uses a sample of 157 banks for the point-in-time analysis, in terms of minimum Tier 1 capital the impact has significantly decreased in relation to the previous reference date of December 2021. In terms of estimated capital shortfall, the impact of the reform has been nearly fully absorbed.

In this alert, you will read more about the main results of the 2022 exercise and its impact on the banking industry.