The Basel Committee on Banking Supervision (BCBS) published the results of its latest Basel III monitoring exercise, based on data as of 30 June 2018 and the standards agreed in December 2017 but not yet reflecting the finalisation of the market risk framework published in January 2019. Data are provided for a total of 189 banks, including 106 large internationally active "Group-1" banks and 83 "Group-2" banks (which have Tier 1 capital of less than €3 billion or are not internationally active). On a fully phased-in basis, the capital shortfalls at the end-June 2018 reporting date are €30.1 billion for Group-1 banks at the target level. These shortfalls are more than 70% smaller than in the end-2015 cumulative quantitative impact study (QIS), thanks mainly to higher levels of eligible capital. For Group-1 banks, the Tier-1 minimum required capital (MRC) would increase by 5.3% 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. The increases in both shortfalls and the change in MRC over the last six months are driven partly by a higher market-risk contribution, which may be offset to some extent by the introduction of the final market risk framework. The current end-June 2018 data show increases in Tier-1 MRC of 1.7%, 1.5% and 8.3% for Group-1 banks, global systemically-important banks (G-SIBs) and Group-2 banks, respectively, compared to 1.7%, 1.2% and 5.3% six months earlier.

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