Regulatory Alerts2018-11-29
Regulation on the Leverage Ratio
The Central Bank of the Republic of Kosovo has established a mandatory 3% minimum leverage ratio for all domestically licensed banks to supplement existing risk-based capital requirements. The regulation defines the metric as Tier 1 capital divided by a comprehensive exposure measure that aggregates on-balance sheet assets, derivatives, securities financing transactions, and off-balance sheet items while prohibiting collateral deductions. Banks must calculate, disclose, and submit quarterly reports of their leverage ratios on a consolidated basis, with the framework taking full effect in January 2020.
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