The Basel Committee is consulting on further revisions to the leverage ratio. Comments are due by 6 July. The Committee is also undertaking a quantitative impact study.
The Committee remains minded to impose additional leverage ratio requirements on G-SIBs, above the 3 percent minimum, but no detailed proposals are presented, with the Committee seeking views on how an additional requirement for G-SIBs might be specified.
The main proposed revisions are to the treatment of derivatives exposures:
More encouragingly for banks, the Committee proposes to allow both general and specific provisions that have decreased Tier 1 capital to reduce the leverage ratio exposure measure for both on- and off-balance sheet exposures.
The Committee is also considering two options for the treatment for measuring regular-way purchases and sales of financial assets, to ensure consistent measure of these exposures across banks, regardless of the accounting framework used by a bank.
There are also some minor proposed revisions to:
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