European banks’ Common Equity Tier 1 (CET1) capital ratios strengthened on average in the third quarter of last year, arresting a downward trend that began at the start of 2018, data from the European Banking Authority (EBA) shows.

The average CET1 capital ratio, calculated on a transitional basis, inched up to 14.7% at end-September from 14.5% in the second quarter, as banks grew their capital buffers and cut down on risk-weighted assets (RWAs). The CET1 capital ratio on a fully loaded basis