The Basel Committee on Banking Supervision (the
"Committee") proposed revisions to leverage ratio Pillar 3
disclosure requirements. Pillar 3 seeks to foster market discipline
through regulatory disclosure requirements.
In a consultative document, the Committee explained that the
Basel III leverage ratio standard consists of a three percent
minimum level that banks with which must comply at all times, and
is "a buffer for global systemically important banks and a set
of public disclosure requirements." For the purpose of
disclosure requirements, banks must report the leverage ratio on a
quarter-end basis or report a measure based on averaging (i.e., by
"using an average of exposure amounts based on daily or
month-end values").
