Leverage ratio

The leverage ratio is a measure which allows for the assessment of institutions’ exposure to the risk of excessive leverage. In accordance with the CRR, institutions have to report to their supervisors all necessary information on the leverage ratio and its components. In addition, institutions have to disclose information on the leverage ratio to the market.  When necessary, the EBA updates its implementing technical standards providing uniform formats and modalities on reporting and disclosure. The EBA also scrutinises the ways in which institutions and competent authorities have implemented the CRR provisions. As upcoming work, insights from this monitoring will be covered in a dedicated report, with the EBA providing guidance where necessary. 

Technical Standards, Guidelines & Recommendations

Technical standards

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).

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.

Opinions, Reports and other Publications