Posts

LeoGlossay: Leverage Ratio

avatar of @leoglossary
25
@leoglossary
·
·
0 views
·
1 min read

The Basel III leverage ratio is defined as Tier 1 capital divided by the bank’s total exposure, expressed as a percentage. The prudential use of a leverage ratio limit is intended to restrict the build-up of leverage in the banking sector and to strengthen the risk-based requirements by adding a simple, non-risk-based backstop.

Posted Using LeoFinance Beta