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| ''Bank regulation''
| | (NDA). |
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| (LR).
| | A legally enforceable agreement to keep information confidential. |
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| A requirement under Basel III regulations for regulated institutions to hold a minimum ratio of capital to absolute balance sheet outstandings (plus certain other items).
| | NDAs are very commonly used during commercial negotiations. |
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| It is calculated as:
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| LR = Tier 1 capital / Leverage Ratio Exposure (LRE)
| | They are also known as ''confidentiality agreements''. |
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| The leverage ratio is the long term capital ratio for banks by which their Tier 1 capital should in due course be at least 5% of their assets.
| | == See also == |
| | * [[Confidential information]] |
| | * [[Confidentiality]] |
| | * [[Data room]] |
| | * [[Disclosure]] |
| | * [[Due diligence]] |
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| This will generally be that their shareholders funds will be >=5% of their loans although the definitions may be subject to domestic practices.
| | [[Category:Accounting,_tax_and_regulation]] |
| | | [[Category:The_business_context]] |
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| Domestic regulators can set higher ratios and the USA has set higher ratios for eight Systemically Important Financial Institutions (SIFIs) than for non-SIFIs.
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| '''Leverage Ratio Exposure'''
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| The [[Leverage Ratio Exposure]] (LRE) - for the purposes of calculating the Leverage Ratio - includes certain other risk exposures, in addition to on-balance sheet assets.
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| == See also ==
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| * [[Basel III]]
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| * [[Countercyclical leverage ratio buffer]]
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| * [[G-SII ALRB]]
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| * [[Leverage]]
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| * [[Leverage Ratio Exposure]]
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| * [[Liquidity Coverage Ratio]]
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| *[[LRT]]
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| * [[Net Stable Funding Ratio]]
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| * [[Off balance sheet risk]]
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| *[[Systemically Important Financial Institution]]
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| *[[Tier 1]]
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Revision as of 08:58, 1 June 2023
(NDA).
A legally enforceable agreement to keep information confidential.
NDAs are very commonly used during commercial negotiations.
They are also known as confidentiality agreements.
See also
