The Bank for International Settlements published its latest Basel III monitoring exercise, showing that risk-based capital ratios for large internationally active banks increased in the second half of 2024, while leverage ratios and Net Stable Funding Ratios (NSFRs) were stable and the Liquidity Coverage Ratio (LCR) declined. Based on data as of 31 December 2024, the report tracks capital and liquidity ratio trends under current jurisdictional Basel III standards and under a fully phased-in final Basel III framework (including the December 2017 Basel III reforms and the January 2019 market risk framework). For Group 1 banks, the average impact of the fully phased-in final framework on Tier 1 minimum required capital rose to +2.1% from +1.8% at end-June 2024, and Group 1 banks reported no regulatory capital shortfall (versus EUR 0.9 billion previously). On liquidity, the weighted average LCR for Group 1 banks fell to 134.8% and three Group 1 banks reported an LCR below the 100% minimum, while the weighted average NSFR was stable at 123.7% with all banks above the 100% minimum. The publication is accompanied by interactive Tableau dashboards with enhanced usability, additional explanatory text and, for the first time, downloadable underlying data. The “fully phased-in” results assume 31 December 2024 positions are subject to full Basel III standards without transitional arrangements, which expire on 1 January 2028.
Bank for International Settlements 2025-10-23
Bank for International Settlements monitoring exercise shows higher Basel III risk-based capital ratios and lower Liquidity Coverage Ratio for large internationally active banks
The Bank for International Settlements' Basel III monitoring exercise shows an increase in risk-based capital ratios for large banks in late 2024, while leverage and Net Stable Funding Ratios stayed stable, and the Liquidity Coverage Ratio declined. Under the fully phased-in Basel III framework, Tier 1 capital for Group 1 banks rose to +2.1%, with no capital shortfall. The average Liquidity Coverage Ratio fell to 134.8%, with three banks below the 100% minimum, while the Net Stable Funding Ratio remained at 123.7%.