Bank of England proposes to exempt claims at Central Banks from Leverage Ratio but raise ratio to 3.25%

The PRA publishes CP11/17

Consultations by the FPC and PRA on changes to the UK leverage ratio framework relating to the treatment of claims on central banks – CP11/17
This document contains two consultations. The first consultation sets out the Financial Policy Committee’s (FPC) proposed Recommendation to the Prudential Regulation Authority (PRA) to exclude claims on central banks from the leverage exposure measure in the UK leverage ratio framework; and compensate for the resulting reduction in capital required by the leverage ratio framework, by increasing the minimum requirement from 3% to 3.25%.

The second consultation (Consultation Paper 11/17) sets out the PRA’s proposals for implementing the FPC’s proposed Recommendation – should it be adopted by the FPC.

These consultations are relevant to PRA-regulated banks and building societies with retail deposits equal to or greater than £50 billion on an individual or a consolidated basis.

View Consultation Paper

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