PRA makes leverage ratio changes

PRA has published changes to its reporting requirements relating to the leverage ratio, to apply to firms’ reporting and disclosure requirements from end of December 2017 onwards. The changes require banks to exclude from the calculation of total exposure measure those assets which are claims on central banks which are matched by deposits in the same currency and of at least the same maturity and complement the record of the FPC meeting which PRA published alongside the new policy and supervisory statements and forms. The FPC also recommended PRA require a minimum leverage ratio of 3.25%.