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Stronger Basel III showing by megas 

November 26, 2014
Salman Aleem Khan, Banking Exchange

The largest U.S. banks reported higher Basel III capital levels in the third quarter. On a median basis, the 12 banks reporting Basel III capital levels under the advanced approaches framework in 2014 saw improvement in all three capital ratios—CET1 ratio, Tier 1 capital ratio, and total risk-based ratio—as of Sept. 30.

Nine of 12 institutions computing capital ratios under the "advanced approaches" saw an improved CET1 ratio and Tier 1 capital ratio compared to the past quarter, while eight saw an improved total risk-based ratio. The pack of 12 institutions saw a median increase of 24, 24, and 17 basis points in the three capital ratios—CET1 ratio, Tier 1 capital ratio and total risk-based ratio—compared to the previous quarter.

These banks reported capital levels under the "advanced approaches" for only the second time in third-quarter regulatory filings. While most of the banks saw improvements in capital ratios, Citibank NA, Morgan Stanley Private Bank NA, and U.S. Bank NA saw a decline in all three capital ratios. 

Read more: Banking Exchange

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