Frequently asked questions on the Basel III leverage ratio framework.
In January 2014, the Basel Committee on Banking Supervision published the Basel III leverage ratio framework and disclosure requirements together with the public disclosure requirements applicable as of 1 January 2015. To promote consistent global implementation of those requirements, the Committee has agreed to periodically review frequently asked questions (FAQs) and publish answers along with any technical elaboration of the standards text and interpretative guidance that may be necessary.
The document published today sets out the third set of FAQs that relate to the Basel III leverage ratio framework. The questions and answers, combined with those published earlier in the first and second sets of FAQs, are grouped according to the following themes:
(i) on-balance sheet exposures;
(ii) derivative exposures;
(iii) specific treatment for written credit derivatives;
(iv) securities financing transaction (SFT) exposures;
(v) cross-product netting agreements for derivative exposures and SFTs;
(vi) treatment of long settlement transactions and failed trades;
(vii) off-balance sheet items; and
(viii) scope of consolidation and disclosure.
- Publication Date: April 2016
- Publication Type: Faqs
- Publication Status: Consolidated
- Publication Category: Leverage Ratio
- Number of Pages: 14
- Keywords: Consolidation, Written Credit Derivative, Securities Financing Transaction, Off-balance Sheet Item, Netting, SFT, Leverage Ratio, Potential Future Exposure, FAQ, On-balance Sheet Exposure, Cash Variation Margin, PFE, Disclosure, Leverage Exposure
For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.
The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).