Some eurozone banks have thin leverage capital buffers
Tier 1 capital surpluses above regulatory minimums range between 31% and 123%
Surplus capital amounts in excess of those needed to meet the leverage ratio vary dramatically across large eurozone banks, Risk Quantum analysis shows.
Across a sample of 17 eurozone banks with leverage exposures above €200 billion ($223 billion), the median ratio of actual Tier 1 capital to the minimum required to meet the Basel-mandated 3% leverage ratio was 165.5% as of the second quarter.
But a handful of banks had leverage capital buffers much thinner than this. Deutsche Bank’s ratio of
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