Exposure Draft on Leverage RatioRelease Date: 16 Aug 2017
This Exposure Draft sets out the Bank’s proposals for the Leverage Ratio (LR) framework for banking institutions, which is part of the Basel III regulatory reforms.
The LR is a non-risk based capital measure intended to serve as a backstop to the risk-based Capital Adequacy Framework, as well as to restrict the build-up of excessive leverage by banking institutions.
Under the proposals, banking institutions will be required to comply with a minimum LR of 3% effective 1 January 2018.
Submission of feedback:
- The Bank invites written feedback on the proposed regulatory requirements, including suggestions on areas to be clarified and alternative proposals that the Bank should consider. The written feedback should be constructive and supported with clear rationale, including accompanying evidence, empirical analysis or illustrations where appropriate;
- In addition to providing general feedback, banking institutions are requested to respond to specific questions set out throughout this Exposure Draft; and
- In addition to existing obligations under Basel III Observation Period Reporting (Net Stable Funding Ratio and Leverage Ratio), banking institutions are required to report LR positions (at the entity, consolidated and Skim Perbankan Islam levels) as at 30 June 2017, based on the parameters in this Exposure Draft and using the reporting template provided. Please attach this to your written feedback under paragraph (a) and (b).
Responses must be submitted to the Bank by 16 September 2017.
Details can be found in the following documents:
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