Leverage ratio

Roles that need it

• Capital Reporting Analyst
• Treasury Analyst
• ALM Analyst
• Balance Sheet Control Analyst
• Regulatory Consultant (Banking)
• FIG Coverage Analyst

Skills it belongs to

• Basel framework and capital
• Prudential and regulatory reporting (COREP, FINREP, US call reports)

Related concepts

• CET1 (Common Equity Tier 1)Common Equity Tier 1 is the highest quality layer of a bank's own funds: ordinary shares, share premium, retained earnings and other reserves, minus regulatory deductions. The CET1 ratio divides it by risk-weighted assets and must be at least 4.5% under the CRR, before buffers and Pillar 2.
• Basel IIIBasel III is the global framework of the Basel Committee on Banking Supervision, agreed from 2010 and finalised in 2017, that raised the quality and quantity of bank capital and introduced the leverage ratio, the LCR and the NSFR. The EU applies it through the CRR and the CRD.
• G-SIB and O-SII (systemically important banks)Global systemically important banks (G-SIBs) are banks whose failure would threaten the world financial system, listed yearly by the FSB. Other systemically important institutions (O-SIIs) are identified nationally in the EU. Both carry extra capital buffers, and G-SIBs must also meet TLAC.

Sources

• Regulation (EU) No 575/2013 (Capital Requirements Regulation), EUR-Lex (external site) accessed 31 Oct 2026
• Basel III leverage ratio framework and disclosure requirements, BIS (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.