Leverage Ratio and Solar CSP: Difference between pages

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''Bank regulation''
''Energy - sustainable finance - green finance''.


(LR).
Solar CSP is an abbreviation for Concentrating Solar Power energy generation.


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).


It is calculated as:
Solar CSP systems use reflectors to focus and concentrate the sun's light energy, typically to raise the temperature of a heat-absorbing heat transfer fluid.


LR = Tier 1 capital / Leverage Ratio Exposure (LRE)
The heat energy in the heat transfer fluid is then used in turn to generate electricity, for example through steam turbines.


Contrasted with Solar PV systems, which generate electricity directly.


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.
This will generally be that their shareholders funds will be >=5% of their loans although the definitions may be subject to domestic practices.
Domestic regulators can set higher ratios and the USA has set higher ratios for eight Systemically Important Financial Institutions (SIFIs) than for non-SIFIs.
'''Leverage Ratio Exposure'''
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.


== See also ==
* [[Green finance]]
* [[Renewables]]
* [[Solar PV]]
* [[Sustainable finance]]


== See also ==
[[Category:The_business_context]]
* [[Basel III]]
[[Category:Corporate_finance]]
* [[Countercyclical leverage ratio buffer]]
[[Category:Investment]]
* [[G-SII ALRB]]
[[Category:Long_term_funding]]
* [[Leverage]]
[[Category:Identify_and_assess_risks]]
* [[Leverage Ratio Exposure]]
[[Category:Manage_risks]]
* [[Liquidity Coverage Ratio]]
[[Category:Risk_frameworks]]
*[[LRT]]
[[Category:Risk_reporting]]
* [[Net Stable Funding Ratio]]
[[Category:Financial_products_and_markets]]
* [[Off balance sheet risk]]
[[Category:Technology]]
*[[Systemically Important Financial Institution]]
*[[Tier 1]]

Latest revision as of 15:57, 1 January 2020

Energy - sustainable finance - green finance.

Solar CSP is an abbreviation for Concentrating Solar Power energy generation.


Solar CSP systems use reflectors to focus and concentrate the sun's light energy, typically to raise the temperature of a heat-absorbing heat transfer fluid.

The heat energy in the heat transfer fluid is then used in turn to generate electricity, for example through steam turbines.

Contrasted with Solar PV systems, which generate electricity directly.


See also