EU Banks More Vulnerable Than Peers to Basel Revamp, Data Show
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Martin Leissl/BloombergThis article is for subscribers only.
Large European banks may be more vulnerable than their global peers to changes in the rules for measuring asset risk that are under discussion at the Basel Committee on Banking Supervision, regulatory data show.
European Union banks that are large and internationally active had an average common equity Tier 1 capital ratio -- a key measure of financial strength -- of 12.4 percent of risk-weighted assets at end-2015, compared with the global average of 11.8 percent, according to data released on Tuesday by the European Banking Authority and the Basel Committee.