The EBA published two reports, on the impact of implementing the final Basel III reforms and on the implementation of liquidity coverage requirements in the EU. The capital monitoring report includes an assessment of the impact of the full implementation (to 2027) of the Basel III package on a sample of 113 EU banks based on data as of 31 December 2018. Overall, the EBA estimates that the Basel III reforms, once fully implemented, would determine an average increase by 19.3% of EU banks' Tier-1 MRC. The impact of the risk-based reforms is 20.4%, of which the leading factors are the output floor (5.4%) and operational risk (4.7%).
The EBA report on liquidity measures shows that EU banks have continued to improve their compliance to the 100% minimum threshold for the LCR, which came into effect in January 2018. As of 31 December 2018, the average LCR was 149%. The aggregate gross shortfall of EUR 15.7 billion is entirely attributable to four banks that monetised their liquidity buffers during times of stress as foreseen by Article 412(1) of the CRR. However, an analysis of potential currency mismatches in LCR levels suggests that banks tend to hold significantly lower liquidity buffers in some foreign currencies; for example, LCR ratios in USD or GBP were in some cases well below 100%.