Bank capital holds at 15.1 percent despite higher output floor
European Union banks maintain an average Common Equity Tier 1 ratio of 15.1 percent under the fully loaded CRR3 framework, the European Banking Authority reported on October 9, 2026. The projected Tier 1 capital requirement increases by 6.0 percent across 129 surveyed institutions.
A rising floor for 33 lenders
Under the fully loaded CRR3 framework, the minimum required Tier 1 capital for 129 evaluated EU and EEA banks is projected to rise by 6.0 percent, compared to 5.1 percent calculated from late 2025 data.
This revision stems from higher standardised total risk exposure amounts and increased exposures under transitional arrangements.
A total of 33 lenders will be bound by the fully loaded 72.5 percent output floor.
Based on static balance sheet assumptions, institutions face no capital deficits before 2030.
Projected aggregate shortfalls will reach €2.2 billion in 2030 before climbing to €18.5 billion when fully phased in by 2033, which equals 0.6 percent of current total regulatory capital.
Transitional gaps skew the baseline
The projections apply stepped calibration factors from 50 percent up to 72.5 percent under Article 465 of CRR3 while unwinding transitional relief.
However, current supervisory reporting does not yet capture credit risk transitional arrangements, leaving their direct impact recorded as zero.
Expiry of these reliefs will eventually elevate standardised equivalent credit risk exposures, altering risk-weighted asset proportions.
All calculations reflect overall capital rules without Pillar 2 Guidance.
Painless now, incomplete tomorrow
A sector-wide shortfall of €18.5 billion by 2033 remains entirely manageable against existing capital buffers.
However, relying on these reassuring figures ignores the distortion caused by missing credit risk reporting data.
The eventual compliance burden will bite harder once full exposure metrics are properly counted.