129 BASEL III LEVERAGE RATIO FRAMEWORK
a. Minimum requirement. The Basel III Leverage Ratio is designed to act as a supplementary measure to the risk-based capital requirements. The leverage ratio intends to restrict the build-up of leverage in the banking sector to avoid destabilizing deleveraging processes which can damage the broader financial system and the economy. Likewise, it reinforces the risk-based requirements with a simple, non-risk based “backstop” measure.
|Basel III Leverage Ratio =||Capital Measure (Tier 1 Capital)
|Report Date||Reference Date||Deadline of Submission|
|30 September 2017
31 December 2017
|31 December 2017||
Fifteen (15) banking days from end of reference date on solo basis, and
|31 March 2018||31 March 2018||
Thirty (30) banking days from end of reference date on consolidated basis
|30 June 2018||30 June 2018|
b. Sanctions. Banks shall not be penalized on any breach on the five percent (5%) minimum leverage ratio during the monitoring period. However, erroneous, delayed, erroneous and delayed, or unsubmitted reports of banks shall be subject to penalties provided under Sec. 171 (Sanctions on Reports for Non-compliance with the Reporting Standards). The reports shall be classified as Category A-1 report.