BIS Reports Stable Basel III Capital Ratios for Large Banks
The Bank for International Settlements said risk-based capital and leverage ratios held steady at the end of 2025 while liquidity indicators showed slight movements for Group 1 banks.
AI illustrationBasel III risk-based capital and leverage ratios remained stable for large internationally active banks as of the end of 2025 compared with June 2025, according to the latest monitoring exercise published by the Bank for International Settlements (BIS).
The average Liquidity Coverage Ratio of Group 1 banks improved slightly while the Net Stable Funding Ratio decreased slightly. The report is based on data as of 31 December 2025 and covers both large internationally active banks, known as Group 1, and other banks, known as Group 2.
The average impact of the fully phased-in final Basel III framework on Tier 1 minimum required capital for Group 1 banks was +2.2%. This was slightly higher than the +1.7% impact at the end of June 2025, a change driven by a bigger sample of banks.
Group 1 banks reported a regulatory capital shortfall of €1.2 billion, compared with €0.9 billion at the end of June 2025.
The weighted average LCR increased to 136.6% for Group 1 banks. The weighted average NSFR decreased slightly to 123.3% for Group 1 banks. All banks in the sample reported an LCR and NSFR above the minimum requirement of 100%.
The sample included 149 banks, of which 106 were Group 1 banks with Tier 1 capital of more than €3 billion. These included 29 global systemically important banks. The sample also included 43 Group 2 banks.
The implementation of the final elements of the Basel III minimum requirements began on 1 January 2023. The BIS has published results of such exercises since 2012. The fully phased-in results assume positions as of 31 December 2025 were subject to full application of the Basel III standards, without transitional arrangements that expire on 1 January 2028.