Basel closes in on IM offset for leverage ratio

US seen as obstacle to consensus; committee expected to allow netting of margin against PFE only

The Bank for International Settlements, Basel
Photo: Ulrich Roth

Bank regulation standard-setters may be on the verge of settling a long-running dispute over the leverage ratio, with three sources expecting a final standard on the ratio’s treatment of client clearing margin following a meeting of the Basel Committee on Banking Supervision on June 19 and 20.

The industry claims the current version of the ratio inflates capital requirements for the clearing business by failing to recognise that margin reduces exposure.

“[We] have heard that a decision is

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

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