UK leverage ratio definition

UK leverage ratio. As per the PRA rulebook, means a bank’s Tier 1 capital divided by its total exposure measure, with this ratio expressed as a percentage. From 1 January 2022, UK banks are subject to a single UK leverage ratio requirement.
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UK leverage ratio. As per the PRA rulebook, means a bank’s tier 1 capital divided by its total exposure measure, with this ratio expressed as a percentage.
Sample 1Sample 2Sample 3
UK leverage ratio. As per the PRA rulebook, means a bank’s Tier 1 capital divided by its total exposure measure, with this ratio expressed as a percentage. In October 2021, PRA issued Policy Statement 21/21 whereby a single UK Leverage Ratio requirement is adopted and changes to the definition of Leverage Exposure Measure and reporting and disclosure requirements have become applicable from 1 January 2022.
Sample 1

Examples of UK leverage ratio in a sentence

  • The calculation of the leverage ratio under the UK leverage ratio framework differs from CRD IV requirements in that the UK version excludes qualifying central bank claims from the leverage exposure measure.

  • The PRA issued Policy Statement “PS27/15 Implementing a UK leverage ratio framework” on 7 December 2015 which set out minimum leverage ratio requirements for all PRA-regulated banks and building societies with retail deposits equal to or greater than £50 billion.

  • The CRR II regulatory transitional arrangements for IFRS 9 are applied in both leverage ratio calculations.2 UK leverage ratio denotes the Group’s leverage ratio calculated under the PRA’s UK leverage framework.

  • As at 31 December 2018, the minimum leverage ratio requirement under the UK leverage ratio framework was 3.25 per cent.

  • Nationwide has a strategic target to maintain a UK leverage ratio of at least 4%.

  • In November 2018, the PRA published Policy Statement 28/18 (“UK leverage ratio: applying the framework to systemic ring-fenced bodies and reflecting the systemic risk buffer”), confirming that from 1 January 2019 the UK leverage ratio framework will apply on a sub-consolidated basis to ring-fenced bodies in scope.

  • In 2017, the PRA updated the UK leverage ratio framework following recommendations from the Financial Policy Committee (FPC).

  • In February 2021, the PRA Issued a Consultation Paper on the UK Implementation of Basel Standards (Includes both CRR and CRR 2) into the PRA Rulebook although the Consultation Paper does not propose any new rules on Leverage for which a review will be conducted in summer 2021 of the UK leverage ratio framework.

  • Following a consultation period, the PRA published policy statement PS27/15 ("Implementing a UK leverage ratio framework") in December 2015.

  • UK Leverage RatioThe PRA issued Policy Statement “PS27/15 Implementing a UK leverage ratio framework” on 7 December 2015 which set out minimum leverage ratio requirements for all PRA-regulated banks and building societies with retail deposits equal to or greater than £50 billion.


More Definitions of UK leverage ratio

UK leverage ratio means, at any time, the ratio of Consolidated Indebtedness of the UK Credit Parties to Consolidated EBITDA of the UK Credit Parties.
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Related to UK leverage ratio

  • Leverage Ratio means the ratio as of the last day of any Fiscal Quarter of (i) Consolidated Total Debt as of such day to (ii) Consolidated Adjusted EBITDA for the four-Fiscal Quarter period ending on such date.

  • Consolidated Leverage Ratio means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the most recently completed Measurement Period.