EBA has published its ninth report on the Basel III monitoring exercise on the European banking system, which it runs in parallel with one conducted at a global level by the Basel Committee. It aggregates results on capital (risk-based and non-risk-based (leverage) ratios) and liquidity ratios (the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR)) for banks in the EU. This report concludes that there has been continued improvement of European banks’ capital positions, with only a small number suffering from potential capital shortfalls. It finds that the leverage ratio is a binding regulatory constraint for a significant number of institutions. The report finds further that there has been an increase in banks’ LCR over time, attributable to structural adjustments and the 2013 recalibration of the LCR framework, and that around three quarters of participating banks already meet the minimum NSFR requirement of 100%. (Source: EBA reports on Basel III monitoring)