Results of the Basel III monitoring exercise as of 31 December 2011

by Sabrina I. Pacifici on September 23, 2012

Results of the Basel III monitoring exercise as of 31 December 2011: “This report presents the results of the Basel Committee’s Basel III monitoring exercise. The study is based on rigorous reporting processes set up by the Committee to periodically review the implications of the Basel III standards for financial markets; the first results of the exercise based on June 2011 data had been published in April 2012. A total of 209 banks participated in the study, including 102 Group 1 banks (i.e., those that have Tier 1 capital in excess of €3 billion and are internationally active) and 107 Group 2 banks (i.e., all other banks). While the Basel III framework sets out transitional arrangements to implement the new standards, the monitoring exercise results assume full implementation of the final Basel III package based on data as of 31 December 2011 (i.e., they do not take account of the transitional arrangements such as the phase in of deductions). No assumptions were made about bank profitability or behavioural responses, such as changes in bank capital or balance sheet composition. For that reason the results of the study are not comparable to industry estimates.”

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