EU banks face near €18bn capital shortfall through output floor

Twenty-one out of 51 banking groups surveyed would be constrained by the output floor

Almost half of the additional capital that banking groups in the European Union may need to satisfy Basel III minimums is due to the imposition of the output floor on their modelled capital amounts, analysis by the European Banking Authority shows.

The watchdog assessed the effects of the output floor on 51 banking groups and 221 sub-consolidated entities that underpin them. It found that of the €37.5 billion ($43 billion) total capital shortfall the banking groups expect to incur from the