Title

Supplementary Leverage Ratio
Client Memorandum

Created date

9/12/2014

The U.S. banking agencies have finalized revisions to the denominator of the supplementary leverage ratio (SLR), which include a number of key changes and clarifications to their April 2014 proposal.  The SLR represents the U.S. implementation of the Basel III leverage ratio.  Under the U.S. banking agencies’ SLR framework, advanced approaches firms must maintain a minimum SLR of 3%, while the 8 U.S. bank holding companies that have been identified as global systemically important banks (U.S. G-SIBs) and their U.S. insured depository institution subsidiaries are subject to enhanced SLR standards.  Using diagrams, formulas, tables and examples, this visual memorandum illustrates key aspects of the SLR framework, including revisions to the denominator of the SLR.