EMEA Banks: Chart of the Month – February 2016

...Improved Disclosure of Regulatory Capital Requirements at Eurozone Banks An increasing number of eurozone-based banks that are directly supervised by the European Central Bank (ECB) are now disclosing the common equity tier 1 (CET1) capital requirements set following the 2015 supervisory review and evaluation process (SREP). This number includes all eurozone global systemically important banks (G-SIBs). EU banks based in the Nordic countries and the UK have disclosed Pillar 2 requirements for some time. Increased disclosure of regulatory capital requirements is helpful for market assessment of each bank's headroom above its minimum requirement. Wide Variance of Pillar 2 Requirements Pillar 2 requirements are set differently across the EU. In the eurozone, the ECB's SREP requirement is based on "fully loaded" CET1 requirements. This means that the implied Pillar 2 requirements ("SREP add-ons") for 2016 are high as they incorporate the part of the fully loaded 2.5% capital conservation buffer...

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