Japan's Norinchukin Bank, Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Trust Holdings Inc. reported the highest liquidity coverage ratios as of September-end, while also placing among the five Asia-Pacific banks reporting the greatest year-over-over rises in the ratio.
Norinchukin Bank saw a 109.50-percentage-point rise in its liquidity coverage ratio to 560.40%, far ahead of all the other lenders analyzed.
The ratio represents a bank's ability to withstand a liquidity crunch and is calculated as high-quality liquid assets as a percentage of net cash outflows over a certain period. Under Basel III, banks have to achieve a minimum liquidity coverage ratio of 100% by Jan. 1, 2019.
On the other hand, Japan-based Mizuho Financial Group Inc. posted the biggest year-over-year drop among the largest banks in Asia-Pacific with assets above US$300 billion, at 11.30 percentage points. The bank was the only Japanese entity to see a decline from Sept. 30, 2016.
Meanwhile, seven Chinese banks reported ratios below 100%, with China Merchants Bank Co. Ltd. posting the lowest liquidity coverage ratio among the sample of 86.62%.
Click here to set up real-time alerts for data-driven articles on any region of interest.