Supplementary Leverage Ratio Standards: An Update
Federal banking agencies recently issued rules related to the supplementary leverage ratio, a key component of bank capital standards. In a series of separate rulemakings, the agencies finalized an “enhanced” supplementary leverage ratio for the largest U.S. top-tier bank holding companies and their insured depository institution subsidiaries, and proposed modifications to the definitions of “total leverage exposure” (the denominator of the supplementary leverage ratio) and “eligible guarantee” under the advanced approaches risk-based capital rules.