Leverage Ratio and UK Corporate Governance Code: Difference between pages

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''Bank regulation''
The UK Corporate Governance Code - issued by the Financial Reporting Council - sets out standards of good practice for larger companies in relation to their board leadership and effectiveness, remuneration, accountability and relations with shareholders.


(LR).
It is sometimes abbreviated to 'the UK Code' or 'CGC'.


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:
The Corporate Governance Code updated and replaced the former Combined Code.


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


== See also ==
* [[Code]]
* [[Code of practice]]
* [[Corporate governance]]
* [[Developments in corporate and market regulation: implications for the treasurer]]
* [[Financial Reporting Council]]
* [[Good practice]]
* [[Premium Listing]]
* [[Senior independent director]]
* [[The City Code on Takeovers and Mergers]]
* [[Turnbull Guidance]]
* [[UK Stewardship Code]]


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.


===Other links===
[https://www.frc.org.uk/directors/corporate-governance-and-stewardship/developments-in-corporate-governance-and-stewardsh FRC Developments in Corporate Governance and Stewardship]


== See also ==
[https://www.frc.org.uk/directors/corporate-governance-and-stewardship/uk-corporate-governance-code UK Corporate Governance Code 2016]
* [[Basel III]]
* [[Countercyclical leverage ratio buffer]]
* [[G-SII ALRB]]
* [[Leverage]]
* [[Leverage Ratio Exposure]]
* [[Liquidity Coverage Ratio]]
*[[LRT]]
* [[Net Stable Funding Ratio]]
* [[Off balance sheet risk]]
*[[Systemically Important Financial Institution]]
*[[Tier 1]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Manage_risks]]
[[Category:Ethics_and_corporate_governance]]

Revision as of 09:43, 19 June 2019

The UK Corporate Governance Code - issued by the Financial Reporting Council - sets out standards of good practice for larger companies in relation to their board leadership and effectiveness, remuneration, accountability and relations with shareholders.

It is sometimes abbreviated to 'the UK Code' or 'CGC'.


The Corporate Governance Code updated and replaced the former Combined Code.


See also


Other links

FRC Developments in Corporate Governance and Stewardship

UK Corporate Governance Code 2016

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