The Financial Policy Committee's powers over leverage ratio tools (updated 3 October 2017)

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This version from: 1 July 2015 - 7 October 2021

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Comparing proposed amendment...


	Executive summary
	1 Introduction
	2 Description and proposed calibration of the FPC’s leverage ratio tools
	2.1 What are the leverage ratio requirements and buffers?
	2.2 To whom would the leverage ratio tools apply?
	2.3 Definition of the leverage ratio
	2.4 How would these tools fit with the rest of the regulatory framework?
	2.5 Proposed calibration of the FPC’s leverage ratio framework
	2.6 How would decisions on leverage ratio tools be co-ordinated with overseas regulators?
	2.7 How would the FPC’s decisions on leverage ratio tools be communicated and enforced?
	2.8 How would the FPC’s Recommendations on the length of time to comply with CCLB requirements be determined?
	3 Impact of the tools on financial stability and growth
	3.1 Impact of minimum leverage ratio requirement
	3.2 Impact of supplementary leverage ratio buffers
	3.3 Impact of CCLB
	3.4 Quantitative analysis of the impact of introducing the proposed leverage ratio framework
	4 Indicators for adjusting the countercyclical leverage ratio buffer
	4.1 Setting the CCB and CCLB
	4.2 Indicators for the CCB and CCLB
	5 Conclusion
	References

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