2021-09-03 | BSD/DIR/PUB/14/063

Guidelines On Leverage Ratio (LeR)

The Central Bank of Nigeria (CBN) has released guidelines for licensed commercial, merchant, and non-interest banks to calculate and maintain a minimum leverage ratio of 4%. The leverage ratio is defined as the capital measure (numerator) divided by the exposure measure (denominator), with the ratio expressed as a percentage. The capital measure is Tier 1 capital, and the exposure measure includes on-balance sheet exposures, derivative exposures, securities financing transactions, and off-balance sheet exposures. The guideline also outlines reporting requirements and provides templates for leverage ratio calculations and disclosures.

Nigeria

Central Bank of Nigeria

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