The Deutsche Bundesbank (BBk) published the results of their semi-annual analysis based on data from 31 December 2018 on 32 German institutions (7 Group-1 banks and 25 Group-2 banks) from the Basel-III monitoring of the BCBS and the EBA.
The full implementation of the final Basel III reform package as of 31 December 2018 will lead to an average increase of 22.2% in the MRC for German institutions, down by 1.4 percentage points compared with the results of 30 June 2018. (The total capital requirement for a full implementation of the final Basel III reform package decreasing slightly from €15.5 billion to €14.0 billion.) The output floor continues to be the main driver of the increase in MRC, from 0.2% in 2022 at a rate of 50% to 17.6% in 2027 at the target rate of 72.5%. Compared to the previous period, the effects of the final Basel III reform package for the German sample have decreased slightly, mainly due to the FRTB revisions, which were published by the BCBS in January 2019 and are included in the impact study for the first time. The increase in MRC for market risk will be reduced from 110% (as of 30 June 2018) to 82%; although, a direct comparison is difficult due to portfolio changes.
All institutions have an LCR of over 100%; however, to meet the NSFR, there is still some additional need for stable financing.