Regulators ease Basel leverage ratio requirements

|By:, SA News Editor

The Basel Committee for Banking Supervision has eased the way banks will have to report leverage ratios, or the amount of capital they hold against their loans and other assets.

The regulations will not force banks to count 100% of their off-balance-sheet assets, such as much of their exposure to derivatives, and guarantees and letters of credit.

That alterations will lower the need for banks to sell assets or raise capital to meet the Basel leverage-ratio requirements, which might be set at 3% or higher from 2018.

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