To assess the impact of the Basel III framework on banks, the Basel Committee on Banking Supervision monitors the effects and dynamics of the reforms. For this purpose, a semi-annual monitoring framework has been set up on the risk-based capital ratio, the leverage ratio and the liquidity metrics using data collected by national supervisors on a representative sample of institutions in each country (by voluntary and confidential data submissions).

Highlights of the Basel III monitoring exercise as of 31 December 2022:

• After their downturn at end-June 2022, initial Basel III capital ratios increase and rise above pre-pandemic levels.
• Liquidity Coverage Ratio declines but remains above pre-pandemic levels.

BIS (Basel Committee on Banking Supervision), September 2023 - Read the full Report, Read the Key Messages or Read the Press Release