The UK leverage ratio framework

Supervisory Statement 45/15

First published on 7 December 2015

This Supervisory Statement (SS) is aimed at Capital Requirements Regulation (CRR) firms in scope of the UK leverage ratio framework. The purpose of this SS is to set out the expectations of the Prudential Regulatory Authority (PRA) on leverage ratio buffers and the reporting and disclosure of an averaged leverage ratio, as well as to provide some clarification on the PRA rules. It should be read alongside the Leverage Ratio, Reporting Leverage Ratio and Public Disclosure Parts of the PRA Rulebook. This statement complements the PRA’s rules in implementing the Financial Policy Committee’s Direction and Recommendation with regard to a UK leverage ratio framework.

As stated in the updated SS, global systemically important institutions (G-SIIs) and firms subject to a systemic risk buffer (SRB) to which the UK leverage ratio framework applies will be invited to apply for a voluntary requirement (VREQ) under section 55M of the Financial Services and Market Act (2000). For more information please see the Additional Leverage Ratio Buffers Model Requirements.  

Future version

Published 8 October 2021. Effective from 1 January 2022.

- following PS21/21 ‘The UK leverage ratio framework’ 

Current version

Published 28 December 2020. Effective from 29 December 2020.

- following PS29/20 ‘Capital Requirements Directive V (CRD V)’.

Past versions

Give your feedback

Was this page useful?
Add your details...