The Leverage Ratio: Tier 1 ÷ Exposure Measure
This lesson is part of the course
In this lesson
You build Northmere's leverage exposure measure from on-balance assets, derivatives, repos and off-balance items, divide Tier 1 by it and find how much the balance sheet could still grow.
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Lessons in this course
- Risk Weights by Exposure Class & Risk-Weighted Assets Locked
- Off-Balance-Sheet Items: Credit Conversion Factors Locked
- CET1, Tier 1 & Total Capital: Composition and Deductions Locked
- Capital Ratios vs the Minimums: CET1, Tier 1 & Total Locked
- Capital Buffers & the Distance to the MDA Trigger Locked
- The Leverage Ratio: Tier 1 ÷ Exposure Measure Locked
- Capital Planning: RWA Growth vs Retained Earnings over 3 Years Locked
- Stress Scenario: CET1 Depletion and the Trough Ratio (Chart) Locked