BANK CAPITAL & CREDIT CONDITIONS · SEPTEMBER 24, 2026
Basel Review Finds Large-Bank Capital and Liquidity Ratios Above Minimums
The Basel Committee's latest monitoring report found stable large-bank capital ratios, a 136.6% average liquidity coverage ratio, and a 2.2% estimated increase in Tier 1 minimum required capital under full final-rule phase-in.
What the September 23 report covers
Source publication date: September 23, 2026. The Basel Committee on Banking Supervision summarized data as of December 31, 2025, from 149 banks: 106 large internationally active Group 1 banks, including 29 global systemically important banks, and 43 Group 2 banks. The exercise uses confidential submissions from banks and national supervisors and assumes full implementation of final Basel III requirements without modeling future profitability or behavioral responses.
- 01149 banks in the sample
- 02Group 1 CET1 held at 13.9%
- 03All sampled banks exceeded 100% LCR and NSFR
Capital ratios were stable while final rules still add requirements
For the unbalanced Group 1 sample, the average Common Equity Tier 1 ratio under the current framework remained 13.9% from June 2025. The Committee estimated that full phase-in of final Basel III standards would increase Tier 1 minimum required capital by 2.2% for Group 1 banks and 0.7% for Group 2 banks. The sample showed a cumulative capital shortfall of €1.4 billion under the final framework, concentrated among non-G-SIB Group 1 and Group 2 banks.
Liquidity measures remained above regulatory thresholds
The weighted average liquidity coverage ratio was 136.6% for Group 1 banks and 196.4% for Group 2 banks at year-end 2025. The weighted average net stable funding ratio was 123.3% and 134.4%, respectively. Every bank in the sample reported both ratios above 100%. These are aggregate international monitoring results; they do not describe every U.S. lender's balance sheet, portfolio appetite, deposit base, pricing, or credit policy.
Practical borrower takeaway
Do not infer that strong system-level ratios guarantee abundant or inexpensive credit for a specific transaction. Maintain current interim statements, tax returns, debt schedules, covenant calculations, liquidity evidence, collateral support, and a clear repayment narrative. Ask each prospective lender about product appetite, hold size, deposit expectations, structure, pricing, and timing, and preserve an alternative funding path. Institution-specific capacity and borrower-specific risk still determine approval and terms.
Borrowers should treat system-level capital strength as context, not a credit promise, and keep complete financials, covenant support, liquidity, collateral, and multiple financing options ready.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.