Four European banks have warned investors about the negative impact of the upcoming final Basel III reforms on their capital ratios as the January 2025 deadline nears.
BNP Paribas provided the most pessimistic outlook, predicting that its Common Equity Tier 1 (CET1) capital ratio would be 80 basis points worse off over the next two years. Of this, 50bp is estimated to result from the package of reforms set to kick in at the start of next year, while the remaining 30bp is attributed to the
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