Regulatory Alerts2019-07-18 | Explanatory Note No. 4 of 2019Interpretations for Banking Act Directions No. 12 of 2018 on Leverage Ratio under Basel III for Licensed Commercial Banks and Licensed Specialised Banks
The Bank Supervision Department of the Central Bank of Sri Lanka issued this explanatory note to standardize leverage ratio calculations for licensed commercial and specialised banks following the adoption of SLFRS 9. Licensed banks must now utilize Sri Lanka Accounting Standards-based statements of financial position to compute exposure measures, while off-balance sheet exposure calculations remain unchanged. This directive ensures consistent capital and risk-weighted asset computations under Basel III, aligning regulatory reporting with updated accounting standards effective from 18 July 2019.
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