IIF Authors

Status: Will be live at 07/06/2016 00:00

Industry Comments on Revisions to the Basel III leverage ratio framework

Wednesday, July 6, 2016

Important priorities commented upon include netting of payables and receivables for unsettled trades, treatment of securitisations that do not meet accounting rules on deconsolidation but are removed from balance sheet from prudential perspective (no recourse), treatment of margin for derivative transactions, treatment of secured financing transactions and proposed changes to credit conversion factors. The joint submission also highlighted concerns over potential additional leverage buffers for GSIBs.

The associations and Members have also been working with GARP to undertake analysis of the potential impact of the proposed leverage ratio framework and several key ratios resulting from that analysis have been included in the comment letter to the BCBS.'