Basel 3 Leverage Ratio: Basic concepts and brief analysis

Basel 3 Leverage Ratio: Basic concepts and brief analysis about Basel 3 and leverage ratio

The Basel III reforms introduced a simple measure to the risk-based capital requirements. . Leverage ratio is a supplementary measure to the risk-based framework of Basel II. The leverage ratio is intended to restrict the build-up of leverage in the banking sector to avoid destabilizing deleveraging processes.

Basel 3 Leverage Ratio: Basic concepts and brief analysis about Basel 3 and leverage ratio