The Bank of England is preparing to recalibrate one of the principal constraints on the size of bank balance sheets. The leverage ratio requires institutions to hold Tier 1 capital against their total exposures, without relying on the risk weights used in the conventional capital framework.
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BoE Leverage Reform
- Published:
17 Jul 2026 - Author:
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Pages:
5 -
The Bank of England is preparing to recalibrate one of the principal constraints on the size of bank balance sheets. The leverage ratio requires institutions to hold Tier 1 capital against their total exposures, without relying on the risk weights used in the conventional capital framework.