Revisions to the Basel III leverage ratio framework - consultative document.
25 April 2016 - Errata:A revised version of this document was published on 25 April 2016 to address errors in select paragraphs of the proposed revisions to the framework text.
- List of revisions
The Basel III framework introduced a simple, transparent, non-risk based leverage ratio to act as a credible supplementary measure to the risk-based capital requirements. The Basel Committee is of the view that a simple leverage ratio framework is critical and complementary to the risk-based capital framework and that a credible leverage ratio is one that ensures broad and adequate capture of both the on- and off-balance sheet sources of banks' leverage.
This document sets out the Committee's proposed revisions to the design and calibration of the Basel III leverage ratio framework. The proposed changes have been informed by the monitoring process in the parallel run period since 2013, by feedback from market participants and stakeholders and by the frequently asked questions process since the January 2014 release of the standard Basel III leverage ratio framework and disclosure requirements.
Among the areas subject to proposed revision in this consultative document are:
measurement of derivative exposures;
treatment of regular-way purchases and sales of financial assets;
treatment of provisions;
credit conversion factors for off-balance sheet items; and
additional requirements for global systemically important banks.
The final design and calibration of the proposals will be informed by a comprehensive quantitative impact study.
The Committee welcomes comments on all aspects of this consultative document and the proposed standards text. Comments on the proposals should be uploaded here by Wednesday 6 July 2016. All comments will be published on the website of the Bank for International Settlements unless a respondent specifically requests confidential treatment.
- Publication Date: April 2016
- Publication Type: Consultative
- Publication Status: Closed
- Publication Category: Leverage Ratio
- Number of Pages: 43
- Keywords: SFT, Leverage Ratio, Derivative Exposures, Deleverage, Backstop, Exposure Measure
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