September ICAS Newsletter- Issue 37/2025

The Common Equity Tier 1 ratio for EU/EEA banks stood at 16.3%, showing an increase of 10 basis points from the prior quarter. Bank capital increased at a higher rate than risk-weighted assets, which rose by approximately 2.2% due to growth in credit risk RWAs. The liquidity coverage ratio and net stable funding ratio both increased in the second quarter, reaching 161.6% (up from 159.5% in Q1) and 127.2% (compared to 126.9% in Q1), respectively. The large-scale transition from cash to central government assets in the High-Quality Liquid Assets composition has decreased in pace. EU/EEA banks’ total assets showed a small increase of EUR 100bn vis-à-vis previous quarter, amounting to EUR 29 trillion. Their cash balances reduced to 10.2% of total.