trending Market Intelligence /marketintelligence/en/news-insights/trending/gMa12zgV9SAXU7iyKCNihA2 content esgSubNav
In This List

Swiss finance authority to consult on leverage ratio and risk diversification

Blog

Commercial Banking: June 22nd Edition

Blog

Commercial Banking Newsletter June Edition - 2022

Podcast

Street Talk | Episode 96: Considering recession risks, prospects that the Fed achieves a 'soft landing'

Case Study

Actions to Reduce Emissions at an Asian Financial Services Firm


Swiss finance authority to consult on leverage ratio and risk diversification

Switzerland's federal department of finance has begun a consultation that could see the introduction of a leverage ratio for all banks and new risk diversification rules.

A revision to financial regulations should see two additions to the Basel III international framework: a leverage ratio dictating that banks' core capital should account for at least 3% of their total exposure, and a change meaning risk concentrations should be measured only according to core capital. Large exposures exceeding 25% of core capital should no longer be permitted in principle, the department said.

The consultation will run until July 14.

The leverage ratio revision should enter force on Jan. 1, 2018, and the risk diversification revision on Jan. 1, 2019.