Basel III monitoring shows stable capital, improved liquidity for large banks
Liquidity ratios for large internationally active banks increased slightly in the first half of 2025, while risk-based capital and leverage ratios remained stable. This is according to the latest Basel III monitoring exercise published by the Bank for International Settlements (BIS).
Liquidity strengthens, capital holds steady
The latest Basel III monitoring exercise, based on data as of 30 June 2025, reveals a slight increase in banks' Liquidity Coverage Ratios (LCRs) and Net Stable Funding Ratios (NSFRs).
Concurrently, risk-based capital and leverage ratios for large internationally active banks (Group 1) remained stable during the first half of 2025.
The average impact of the fully phased-in Basel III framework on the Tier 1 minimum required capital (MRC) for Group 1 banks decreased, reflecting ongoing implementation progress of the December 2017 and January 2019 reforms.
This report covers both Group 1 and Group 2 banks, providing a comprehensive overview of current capital and liquidity trends across 150 institutions, including 29 global systemically important banks (G-SIBs).
New insights on cryptoasset exposures
A newly expanded cryptoasset exposures dashboard accompanies the report, offering an intuitive way to explore how banks classify their cryptoasset holdings, specifically against the four classification conditions outlined in SCO60. The monitoring exercise covers 150 banks, including 101 large internationally active Group 1 banks (Tier 1 capital exceeding €3 billion) and 49 smaller Group 2 banks.
The report distinguishes between current jurisdictional standards as of June 2025 and the fully phased-in Basel III framework, which assumes full application of standards by 2028, without accounting for transitional arrangements.
This distinction helps illustrate the long-term impact of the reforms.
Steady hand, evolving challenges
This monitoring exercise confirms the resilience of large banks under Basel III, a testament to years of regulatory effort.
However, the persistent need for implementation progress and the introduction of new dashboards for cryptoassets underscore the dynamic nature of financial risks.
While routine, the report signals that supervisory vigilance must adapt to an ever-changing landscape, even as core capital metrics stabilize.