The Basel Committee on Banking Supervision (Basel Committee) has published a consultative document on revisions to the Basel III leverage ratio framework.
The consultative document sets out the Basel 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:
- measures 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 deadline for comments is 6 July 2016.
View BCBS consults on revisions to Basel III level ratio framework, 6 April 2016