Regulatory Alerts2018-12-28 | Circular No. 03 of 2018Computation of Leverage Ratio under Basel III for National Savings Bank
The Central Bank of Sri Lanka permits National Savings Bank to exclude government securities representing sixty percent of savings and deposit funds from its leverage ratio exposure measure. This exclusion is implemented by deducting the specified amount from web-based return code 36.2.1.1.1.0 in the quarterly BSD-QF-36-EM submission. The directive aligns the institution’s leverage ratio calculation with Banking Act Directions No. 12 of 2018 governing licensed commercial and specialized banks.
CENTRAL BANK OF SRI LANKA BANK SUPERVISION DEPARTMENT
28 December 2018 | CIRCULAR | No. 03 of 2018
To - Chief Executive Officer of National Savings Bank
COMPUTATION OF LEVERAGE RATIO UNDER BASEL III FOR NATIONAL SAVINGS BANK
We refer to Banking Act Directions No.12 of 2018 on “Leverage Ratio under Basel III for Licensed Commercial Banks and Licensed Specialised Banks” and inform you the following:
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Computation of Leverage Ratio Exposure Measure
1.1 The Central Bank of Sri Lanka has decided to permit National Savings Bank to exclude investments in government securities representing sixty per cent of money deposited in savings and deposit accounts of the bank from the exposure measure when calculating the Leverage Ratio.
1.2 The amount mentioned in 1.1 shall be deducted from web based return code 36.2.1.1.1.0 in the quarterly return of BSD-QF-36-EM.
(Signature)
A A M Thassim Director of Bank Supervision
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