BANKING
Leverage Ratio
Provides a non-risk-weighted capital backstop.
Formula
Leverage ratio = Tier 1 capital / Exposure measure ×100
Variables: Tier 1 capital; leverage exposure
What it means
Provides a non-risk-weighted capital backstop.
Example
Tier 1 capital 6 against exposure 100 gives a 6% leverage ratio.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.