This is the first edition of a new quarterly statistical release which will show levels of capital and risk-weighted assets for the UK banking sector, with breakdowns of the movements in different tiers of capital and risk exposure types, and overall capital ratios.
At the end of Q3 2016 the average capital ratios for the UK banking sector, for common equity Tier 1 (CET1), Tier 1 and total capital were all higher than a quarter earlier and higher than in Q3 2015. At the end of Q3 2016 the CET1 ratio was 14.8% and the total capital ratio 20.6% (see Table A and Chart 1).
These increases in Q3 2016 were due to both a decrease of 3.3% in the level of total risk-weighted assets and an increase of 2.1% in the level of Tier 1 capital (see Table A and Chart 2). Chart 21 shows a decomposition of the recent changes in the total capital ratio into the approximate contributions from changes in levels of capital and risk-weighted assets.