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| ''Bank regulation''
| | (OPDU). |
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| (LR).
| | A commercial organisation providing insurance cover to trustees, administrators and sponsoring employers of UK occupational pension schemes. |
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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). | |
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| It is calculated as:
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| LR = Tier 1 capital / Leverage Ratio Exposure (LRE)
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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.
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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.
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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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| This requirement is intended to be implemented progressively by 1 January 2019.
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| The initial minimum Basel III requirement was set at 3%, for periods to the end of 2016.
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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 == | | == See also == |
| * [[Basel III]] | | * [[Trustee liability insurance]] |
| * [[Countercyclical leverage ratio buffer]]
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| * [[G-SII ALRB]]
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| * [[Liquidity Coverage Ratio]]
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| * [[Net stable funding ratio]]
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| * [[Leverage]]
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| * [[Leverage Ratio Exposure]]
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| *[[LRT]]
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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 15:08, 21 August 2013
(OPDU).
A commercial organisation providing insurance cover to trustees, administrators and sponsoring employers of UK occupational pension schemes.
See also
