This report collates timely information on EU GSIBs’ prudential capital, leverage and liquidity ratios with updated information as at 31 March 2019.

It also illustrates the recent performance of the debt and contingent convertibles (CoCo) markets and the funding structure for banks in Europe as of June 2019. 

Among the main findings of this report:

• The weighted average CET1 for EU GSIBs increased slightly in 1Q 2019 against the ratios reported at the end of 2018.
  
  All EU GSIBs increased their CET1 capital levels compared to the end of 2018, while RWA volumes continued to increase reaching a total of €5tn—around €200bn above the minimum levels reached at the end of 2017.
  
  Earnings retention contributed 22bps to the quarterly CET1 ratio variation. This increase was offset in 17bps by an increase in RWAs by 8 of the 11 banks as a consequence of business growth (most predominantly credit risks). Other factors including FX variation, also contributed in 5bps to the quarterly increase on CET ratio.

• End-point Tier 1 ratios increased to 15.0% in 1Q19, from 14.8% in 4Q18.
  
  
• End-point Leverage ratios (LR) declined to 4.7% in 1Q19 from 4.8% in 4Q18.
  
  
• Liquidity Coverage Ratio (LCR) declined to 141.9% on a weighted average basis in 1Q19, from 144.7% in 4Q18.
  
  
• Capital raising from markets regaining pace: The amount of new capital raised during 1H 2019 by EU banks totalled €18.4 bn (about 85% of the amount raised in 2018FY). The amount raised in 2018 brings the total tally of capital raised from markets since 2009 to €511bn.
  
  
• Bail-inable bonds: EU GSIBs have continued to issue bail-inable senior non-preferred bonds, accumulating a total stock of €130bn as of June 2019 representing between 1.1% and 5.1% of EU GSIBs RWAs, as banks continue to prepare for the implementation of TLAC/MREL requirements.
  
  
• Box: Mapping EU liquidity pools: Pages 19-25 summarise a forthcoming research note produced by AFME which seeks to analyse the relative size and connectivity between current EU28 liquidity and investment pools.
  
  The note finds that that non-EU27 entities significantly contribute to the well-functioning of the EU’s liquidity pool.
  
  The level of interconnectedness between EU27 and London may change depending on the terms of the future relationship between the European Union and the United Kingdom. Some market liquidity activities have been recently relocated from the UK to different EU financial centres like Frankfurt, Paris, Dublin and Amsterdam.