On October 1, 2015, the European Banking Authority (EBA)
published its first report analyzing asset encumbrance in EU
banks.
The aim of the report is to monitor the extent of and the
changes in the levels of asset encumbrance at an EU level and the
sources for asset encumbrance. The report is based on data reported
in December 2014 and March 2015 in accordance with the implementing
technical standards on asset encumbrance reporting contained in
European Commission Implementing Regulation 2015/79.
The EBA found there was no indication of a general increase in
the level of asset encumbrance across EU banks in recent years,
based on a comparison with a similar analysis performed by the
European Systemic Risk Board in 2011. In March 2015, the overall
weighted average encumbrance ratio was 27%, with a wide dispersion
across institutions and countries.
