Regulators cool on plans to change leverage exposure sums
SA-CCR is seen as a successor to the 27-year-old CEM, but sensitivity may count against it
Regulators are said to be cooling on plans to ditch the 27-year-old risk measure at the heart of Basel III's leverage ratio in favour of a modern – and more risk-sensitive – replacement. The fear among some officials is that making the ratio sensitive to risk would make it a less effective supplement to existing, risk-weighted capital requirements.
Leaving the current exposure method (CEM) in
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