All but seven of the 30 largest Asia-Pacific banks by assets raised their Basel III leverage ratios in the first half from a year ago, an analysis by S&P Global Market Intelligence shows.
The ratio is calculated by dividing a bank's Tier 1 capital by its total leverage exposure. Under Basel III, the ratio takes into account both on-balance-sheet and off-balance-sheet exposures.
Postal Savings Bank of China Co. Ltd. led the pack with its 63-basis-point increase to 4.09% at the end of June, though the four largest Chinese commercial banks, Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Bank of China Ltd. and Agricultural Bank of China Ltd., saw declines in their leverage ratios of between 1 basis point and 19 basis points.
Meanwhile, Singapore-based Oversea-Chinese Banking Corp. Ltd. saw its leverage ratio decrease by 40 basis points to 7.80%, the sharpest decline among the companies sampled, though it has the second-highest leverage ratio among the 30 banks.
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