Leverage ratio

The leverage ratio is a new monitoring tool which will allow competent authorities to assess the risk of excessive leverage in their respective institutions. According to the CRR, the latter will have to report all necessary information on the leverage ratio and its components. In this respect, the EBA is developing a draft ITS on supervisory reporting requirements for the leverage ratio, which aims at providing national authorities with harmonised information on the leverage ratio using uniform reporting formats. Other work on the leverage ratio includes the development of a draft ITS in anticipation of the required disclosure of the leverage ratio, which is expected to start in January 2015. In addition, the EBA will continue to assess the impact of the leverage ratio as a binding measure.

Technical Standards, Guidelines & Recommendations

  • Implementing Technical Standards amending Commission Implementing Regulation (EU) No 680/2014 (ITS on supervisory reporting) with regard to the Leverage Ratio (LR)

    Following the Commission’s adoption on 10 October 2014 of a Delegated Act amending the definition of the LR in the Capital Requirements Regulation, the EBA now has developed amendments to the current ITS on reporting. The proposed amendments to the LR reporting instructions and templates are, however, limited and mainly reflect an alignment with the standard on LR published by the Basel Committee on Banking Supervision (BCBS).

    Status: Final draft adopted by the EBA and submitted to the European Commission

  • Implementing Technical Standards (ITS) on disclosure for leverage ratio

    These ITS will be part of the EU Single Rulebook in the banking sector and aim at harmonising disclosure of the leverage ratio across the EU by providing institutions with uniform templates and instructions. Following the Commission's adoption on 10 October 2014 of a Delegated Act amending the definition of the LR in the Capital Requirements Regulation, the EBA now has developed amendments to the current ITS on disclosure.

    Status: Adopted and published in the Official Journal

  • Implementing Technical Standards on Supervisory Reporting

    These Implementing Technical Standards (ITS) aim at implementing uniform reporting requirements which are necessary to ensure fair conditions of competition between comparable groups of credit institutions and investment firms. Uniform requirements will ultimately make institutions more efficient and result in a greater convergence of supervisory practices. These ITS will cover reporting of own-funds and capital requirements (currently under the COREP Guidelines), reporting of financial information (currently under the FINREP Guidelines),reporting on large exposures (currently under the COREP Large Exposures Guidelines), reporting on leverage and reporting on liquidity and stable funding. They will be complemented by other specific reporting templates introduced by the Capital Requirements Regulation (asset encumbrance, forbearance and non-performing exposures).

    Status: Adopted and published in the Official Journal

 

Other Publications

Reports