Leverage ratio redux: the fallout from French bank court win

EU countries could seek to benefit from exclusion of state-backed deposits from leverage ratio

A ruling by a European court has given six of France’s largest banks cause for celebration, by allowing them to exclude deposits held at state-backed institutions from the calculation of an important metric of capital adequacy, the leverage ratio.

The celebrations foreshadow a wider change for lenders across the continent as separate revisions to the capital requirements regulation, known as CRR II, look set to write the exclusion into law for all European Union banks.

The July 13 court

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: