PRA invites firms to apply for a temporary modification of the leverage ratio

August 4, 2016

The Prudential Regulation Authority (PRA) has published an invitation for firms to apply for a temporary modification of the leverage ratio part of the PRA Rulebook. This modification is available to firms that are currently subject to the UK leverage ratio framework. Firms can apply for the modification immediately.

The Financial Policy Committee (FPC) recommended to the PRA that, when applying its rules on the leverage ratio, it considers allowing firms to exclude from the calculation of the total exposure measure those assets constituting claims on central banks where they are matched by deposits accepted by the firm that are denominated in the same currency and of identical or longer maturity.

The PRA statement on the leverage ratio can be found here.

Waivers by consent can be found here.

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