Regulators cool on plans to change leverage exposure sums

SA-CCR is seen as a successor to the 27-year-old CEM, but sensitivity may count against it

increase-graph-chalkboard
Regulators may stick to calculating exposure the old-fashioned way

Regulators are said to be cooling on plans to ditch the 27-year-old risk measure at the heart of Basel III's leverage ratio in favour of a modern – and more risk-sensitive – replacement. The fear among some officials is that making the ratio sensitive to risk would make it a less effective supplement to existing, risk-weighted capital requirements.

Leaving the current exposure method (CEM) in place, though, would increase pressure on some bank businesses – notably client clearing – which consume

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here