The Basel Committee on Banking Supervision revised leverage ratio and disclosure requirements under the Basel III capital framework. Basel’s minimum leverage ratio — Tier 1 capital divided by an “exposure measure” — remained at 3 percent.
The ratio differs from Basel’s June 2013 proposal in allowing banks to reduce the exposure measure by adjusting several calculations, including those related to securities financing transactions, off-balance sheet items, cash variation margin, central clearing and written credit derivatives.
It also differs from the U.S. financial agencies’ proposed supplementary leverage ratio of 6 percent. ABA urged regulators in October to delay the U.S. proposal until after the Basel Committee had released its revised exposure measure calculations.
Read the framework.