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Home > Publications > Record of FPC meeting on the leverage ratio review, held on 15 October 2014

Record of FPC meeting on the leverage ratio review, held on 15 October 2014

31 October 2014

​Record of FPC

At its meeting on 15 October, the Financial Policy Committee (FPC) agreed the following recommendation:

The FPC recommends that HM Treasury exercise its statutory power to enable the FPC to direct, if necessary to protect and enhance financial stability, the PRA to set leverage ratio requirements and buffers for PRA-regulated banks, building societies and investment firms, including:

a)    a minimum leverage ratio requirement;

b)    a supplementary leverage ratio buffer that will apply to G-SIBs and other major domestic UK banks and building societies, including ring-fenced banks; and

c)    a countercyclical leverage ratio buffer.

Record of the Financial Policy Committee meeting held on 15 October 2014

FPC Leverage Ratio Review

In November 2013, the Chancellor requested that the Financial Policy Committee (FPC) undertake a review of the role of a leverage ratio in the UK’s capital framework for banks. Having issued a consultation paper on 11 July 2014, the FPC published its final review on 31 October 2014 setting out its proposals for the design of the leverage ratio framework, including its views on the calibration of that framework. This review complements the FPC’s medium-term priorities on the capital framework and on ending ‘too big to fail’ (TBTF).

The Financial Policy Committee's review of the leverage ratio
31 October 2014

Letter from the Governor to the Chancellor
Letter from the Chancellor to the Governor
Exchange of letters - 31 October 2014