European banks set for 17.6% capital hike under Basel III

Output floor expected to push Tier 1 capital requirements up 7.3% alone, latest BCBS monitoring report shows

Large European banks are expected to see their Tier 1 capital requirements increase by 17.6% under the fully loaded Basel III rules compared with end-2020 levels, figures from the Basel Committee on Banking Supervision (BCBS) shows.

The average capital increase for European Group 1 banks – internationally active firms with more than €3 billion ($3.5 billion) in Tier 1 capital – is driven by the output floor, which is expected to hike their minimum required capital (MRC) by 7.3% over eight years

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