Mizuho faces steepest capital squeeze from Basel floor
Fully floored RWAs would cut core capital ratio by 244bp, the sharpest drop among Japanese megabanks
Mizuho Financial Group faces the largest impact among Japanese systemic lenders under the fully phased-in Basel III output floor.
Its Common Equity Tier 1 (CET1) capital ratio would drop by 244 basis points compared with the latest figure disclosed for end-September, reflecting a 17.8% increase in risk-weighted assets (RWAs) to ¥15.15 trillion ($97.5 billion).
This adjustment would reduce the bank’s CET1 ratio to 11.25%, down from the reported 13.69%.
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