Leverage Ratio and SDG 12: Difference between pages

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''Bank regulation''
''Sustainability - United Nations - Sustainable Development Goals.''


(LR).
Abbreviation for the UN's Sustainable Development Goal 12 - Ensure sustainable consumption and production patterns.


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:
LR = Tier 1 capital / Leverage Ratio Exposure (LRE)


== See also ==
* [[SDG 1]]
* [[SDG 2]]
* [[SDG 3]]
* [[SDG 4]]
* [[SDG 5]]
* [[SDG 6]]
* [[SDG 7]]
* [[SDG 8]]
* [[SDG 9]]
* [[SDG 10]]
* [[SDG 11]]
* [[SDG 13]]
* [[SDG 14]]
* [[SDG 15]]
* [[SDG 16]]
* [[SDG 17]]
* [[Sustainability]]
* [[Sustainability Accounting Standards Board]]
* [[Sustainable Development Goals]]
* [[United Nations]]
* [[United Nations Department of Economic and Social Affairs]]
* [[United Nations Global Compact]]
* [[World Business Council for Sustainable Development]]


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.  
==External link==
[https://sdgs.un.org/goals/goal12 United Nations Sustainable Development Goal 12]


 
[[Category:Accounting,_tax_and_regulation]]
Domestic regulators can set higher ratios and the USA has set higher ratios for eight Systemically Important Financial Institutions (SIFIs) than for non-SIFIs.
[[Category:The_business_context]]
 
[[Category:Compliance_and_audit]]
This requirement is intended to be implemented progressively by 1 January 2019.
[[Category:Ethics]]
 
[[Category:Identify_and_assess_risks]]
 
[[Category:Manage_risks]]
The initial minimum Basel III requirement was set at 3%, for periods to the end of 2016.
[[Category:Risk_frameworks]]
 
[[Category:Risk_reporting]]
 
'''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 ==
* [[Basel III]]
* [[Countercyclical leverage ratio buffer]]
* [[G-SII ALRB]]
* [[Liquidity Coverage Ratio]]
* [[Net stable funding ratio]]
* [[Leverage]]
* [[Leverage Ratio Exposure]]
*[[LRT]]
* [[Off balance sheet risk]]
*[[Systemically Important Financial Institution]]
*[[Tier 1]]

Revision as of 10:57, 6 October 2021

Sustainability - United Nations - Sustainable Development Goals.

Abbreviation for the UN's Sustainable Development Goal 12 - Ensure sustainable consumption and production patterns.


See also


External link

United Nations Sustainable Development Goal 12

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