Investor Shelf

Glossary

Leverage Ratio (LR)

A non-risk-based regulatory backstop that relates a bank's Tier 1 capital to its total exposure, including off-balance-sheet items.

Source: Regulatory Incentives and the Structure of Euro Area Money Markets (European Central Bank) · p.8

Have a question about Leverage Ratio (LR)? Ask the AI, answers cite the source.