Large Bank Examination Workshop February 2026

Leverage Ratio

• Objectives – to supplement RBC ratios in capturing risk • Numerator – Tier 1 capital • Denominator – Total assets • Not affected by risk weighting of assets • Puts a “floor” on capital in the banking system

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Leverage Ratio

• Minimum ratio – 3% • As a Pillar 2 measure to start with but will be integrated with Pillar 1 • Leverage ratio tracked from January 1, 2011 to see the result of the above definition and parallel run from January 1, 2013 to 2017 and final adjustment in

2017 – Disclosure from January 2015 • As Pillar 1 ratio from January 1, 2018

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