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On the capital side, the exercise estimated no shortfalls of CET1 capital, and relatively low shortfalls of Tier 1 and total capital, at EUR 0.1 billion and EUR 0.1 billion respectively.
The analysis of leverage ratio (LR) shows that there has been a continuous increase in the last periods. The analysis estimates the LR at 5.0% as of June 2017 (5.0% as of December 2016). A small percentage of institutions in the sample (2.5%) would be constrained by the minimum leverage ratio requirement (3%) on top of risk-based minimum requirements.
On the liquidity side, the liquidity coverage ratio (LCR) analysis is based on data in accordance with the Commission's Delegated Regulation. The average LCR was 143.1% at end June 2017 (139.5% as of December 2016), and all banks in the sample show a LCR above the full implementation minimum requirement applicable from January 2018 (100%). In addition, time-series analyses show that the weighted average LCR has increased since June 2011, mainly due an increase in banks' liquidity buffers.
In the absence of a finalised EU definition, the EBA monitors the Net Stable Funding Ratio (NSFR) compliance with the current Basel III standards. The analysis shows an overall average NSFR ratio of 112.3% (112.0% as of December 2016) with an overall shortfall in stable funding of EUR 50.9 billion. Compared with previous periods, there has been a continuous increase in banks' NSFR, mainly driven by the increasing amount of available stable funding (ASF) for both groups. Around 81% of participating banks already would meet the minimum NSFR requirement of 100%.
Report monitoring exercise - June 2017