This chapter describes the scope of consolidation to be used in calculating the leverage ratio.
Effective as of:
15 Dec 2019
|
Last update:
15 Dec 2019
10.1
The Basel III leverage ratio framework follows the same scope of regulatory consolidation as is used for the risk-based capital framework. This is set out in the SCO standard.
10.2
Where a banking, financial, insurance or commercial entity is outside the scope of regulatory consolidation, only the investment in the capital of such entities (ie only the carrying value of the investment, as opposed to the underlying assets and other exposures of the investee) is to be included in the leverage ratio exposure measure. However, investments in the capital of such entities that are deducted from Tier 1 capital as set out in [LEV30.6] may be excluded from the leverage ratio exposure measure.