This In Focus provides a summary of leverage ratios used in bank capital requirements. It also explains the concept of leverage and the rationale behind a leverage ratio.
What Is Basel III? In response to the crisis, 27 countries agreed in 2010 to modify the Basel Accords, shared bank regulatory standards. The agreement, known as “Basel III,” included modifications to capital requirements, which U.S. bank regulators implemented through rulemaking in 2013. For more information, see CRS Report R42744, U.S. Implementation of the Basel Capital Regulatory Framework.
Date of Report: October 31, 2014
Order Number: IF00062
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