CRR II pulls Crédit Agricole’s leverage ratio both ways
New capital requirements offset by ECB exposure relief
Crédit Agricole felt the push and pull of new European Union capital rules in the second quarter. The bank’s leverage ratio fell 10 basis points to 5.3% under the Capital Requirements Regulation (CRR II), which came into force at the end of June, but added a further 60bp to reach 5.9% with European Central Bank exposure relief.
CRR II introduces capital requirements based on the daily average of securities financing transactions (SFTs) exposure, which aims to smooth out quarter-end anomalies
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