The Basel Committee has published the results of its Basel III monitoring exercise which is based on rigorous reporting processes set up by the Committee to periodically review the implications of the Basel III standards for financial markets. The report focuses on: changes to bank capital ratios under the new requirements; changes to the definition of capital that result from the new capital standard referred to as common equity Tier 1; increases in risk-weighted assets resulting from changes to the definition of capital, securitisation etc; the Basel III leverage ratio and two Basel III liquidity standards.

The Basel Committee on Banking Supervision has also published a “Frequently Asked Questions on Basel III Monitoring”. This document provides answers to technical and interpretive questions raised by supervisors and banks during the Committee’s Basel III monitoring.