6.1 This section sets out the analysis of the potential costs and benefits of the FPC's proposed changes to the UK leverage ratio framework. All numerical estimates should be treated as indicative, as they are subject to uncertainty and are highly sensitive to the underlying assumptions.
6.2 The FPC expects its leverage ratio framework to continue to benefit the UK economy by enhancing the resilience of the UK financial system to systemic crises, while avoiding potentially negative impacts on competition in the UK financial sector. It expects these benefits to accrue via three main channels:
(a) a minimum leverage ratio requirement that enhances the effectiveness of capital regulation by guarding against model risk, unforeseeable events causing losses, and by limiting unsustainable balance sheet 'stretch' across the system;
(b) supplementary leverage ratio buffers on systemically important banks that complement the supplementary risk-weighted buffers. This enhances the resilience of sy
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