This chapter describes the leverage ratio buffer requirements applying to global systemically important banks.

Version effective as of 01 Jan 2023

First version in the format of the consolidated framework, reflects the requirements introduced in the December 2017 Basel III publication and the revised implementation date announced on 27 March 2020.

40.1 To maintain the relative roles of the risk-based capital and leverage ratio requirements, banks identified as global systemically important banks (G-SIBs) according to SCO40 must also meet a leverage ratio buffer requirement. Consistent with the capital measure required to meet the leverage ratio minimum described in LEV20.4, G-SIBs must meet the leverage ratio buffer with Tier 1 capital.

40.2 The leverage ratio buffer will be set at 50% of a G-SIB’s higher loss-absorbency risk-based requirements. For example, a G-SIB subject to a 2% higher loss-absorbency requirement would be subject to a 1% leverage ratio buffer requirement.

40.3 The design of the leverage ratio buffer is akin to the capital buffers in the risk-based framework. As such, the leverage ratio buffer will include minimum capital conservation ratios divided in five ranges. Capital distribution constraints will be imposed on a G-SIB which does not meet its leverage ratio buffer requirement.