Higher market risk raises Basel III capital shortfall to €36bn

Banks are currently €36.1 billion short of the capital they need to comply with the fully loaded Basel III requirements that will take effect in 2027, data from the Basel Committee shows.

Group 1 banks – internationally active firms with more than €3 billion ($3.4 billion) in Tier 1 capital – need to raise €30.2 billion in aggregate to meet their end-state capital targets. The 29 global systemically important banks (G-Sibs) account for €29.3 billion of this shortfall.

Of the Group 1 shortfall