The European Banking Authority (EBA) has published an own initiative report setting out a policy analysis and quantitative impact assessment of aligning the current Capital Requirements Regulation (CRR) definition of the leverage ratio exposure to the Basel III standard.

The report highlights the main differences between the current CRR leverage ratio and the Basel III ratio, with a view to informing the European Commission for the purpose of its delegated act on the definitions for the leverage ratio as provided for in the CRR. The report uses data gathered for Basel III monitoring up to 30 June 2013 and is split into the following sections:

  • chapter 1 highlights the main events of the previous years that have resulted in the implementation of the leverage ratio in the CRR with certain differences when compared to Basel III;
  • chapter 2 contains important caveats regarding the methodology applied which should be taken into account when interpreting the results;
  • chapters 3 and 4 contain more detailed policy analyses and quantitative impact assessments of aligning the CRR definition of the leverage ratio exposure measure to Basel III; and
  • annex 1 contains a list of differences described in the report and explains how they relate to the CRR.

View Report on impact of differences in leverage ratio definitions, 4 March 2014

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