ECB raises capital requirements for eurozone banks
Geopolitics and macro-financial shocks remain top priority for next three years, annual review states
The European Central Bank (ECB) has slightly increased its capital requirements on banks for 2025.
Its latest Supervisory Review and Evaluation Process (SREP) report, published today (December 17), notes that for 2025, eurozone banks’ common equity tier 1 (CET1) ratio for Pillar 2 requirements will be raised from 1.1% to 1.2% of risk-weighted assets. The countercyclical capital buffer requirement will also increase slightly from 0.6% to 0.7%.
As a result, the overall CET1 capital requirements and
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