

Basel III output floor set to bind 24% of banks
Latest BCBS monitoring report shows four-fold increase over next seven years
Almost a quarter of banks globally are set to be bound by the Basel III output floor on internally modelled capital requirements by 2028, up from just 6% at end-2021, figures from the Basel Committee on Banking Supervision (BCBS) show.
The output floor bars banks from reducing their modelled capital requirements below 72.5% of the amount generated by the revised standardised approach. Presently, it’s up to national authorities whether to impose it, but the finalised Basel III package will set
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