BCBS Monitoring Report Gives Big Banks Passing Grades

The Basel Committee on Banking Supervision ("BCBS") conducted a monitoring exercise that determined all large internationally active banks meet Basel III minimum and Common Equity Tier 1 target capital requirements. Additionally, the monitoring report examined: (i) bank data on Basel III's liquidity requirements; and (ii) a longer-term structural liquidity standard – the Net Stable Funding Ratio. BCBS explained that the monitoring exercise is part of a "rigorous reporting process to regularly review the implications of the Basel III standards for banks . . . since 2012."

The BCBS monitoring exercise data is still subject to further analysis and the key results will be published at the end of the year.