Leverage ratio – revised exposure definition
Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.

No data available for the deliverable: Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.

Summary

The reform updates the exposure definition and introduces a leverage ratio buffer for D-SIBs (domestic systemically important banks), aligns with BCBS refinements (eg, derivatives, SFTs) and enhances disclosure requirements. In addition, it adjusts the calculation of leverage ratio for banks. This is progressing with implementation under way (deadline mid-2025).

Canvas not supported.

Is it working?

The reform is almost complete, with final compliance steps implemented in July 2025. Subsequently, the prudential authority (PA) confirmed in its regulatory publications and directives that the revised leverage ratio exposure definition, part of the Basel III post-crisis reform became operational on 1 July 2025.

Actions

Banks are well above the minimum leverage ratio and the revised definition has improved comparability and transparency.

Are there plans?

Regulatory amendments and new disclosure templates have been rolled out, with public reporting now standard.

Is it on the agenda?

The SARB/Prudential Authority have made this a key Basel III deliverable, with phased implementation and industry reporting.

Goals

To strengthen the leverage ratio as a backstop to risk-based capital requirements and enhance transparency.

Departments / Govt Institutions

South African Reserve Bank (SARB)

Summary

The reform updates the exposure definition and introduces a leverage ratio buffer for D-SIBs (domestic systemically important banks), aligns with BCBS refinements (eg, derivatives, SFTs) and enhances disclosure requirements. In addition, it adjusts the calculation of leverage ratio for banks. This is progressing with implementation under way (deadline mid-2025).

Canvas not supported.

Is it working?

The reform is almost complete, with final compliance steps implemented in July 2025. Subsequently, the prudential authority (PA) confirmed in its regulatory publications and directives that the revised leverage ratio exposure definition, part of the Basel III post-crisis reform became operational on 1 July 2025.

Actions

Banks are well above the minimum leverage ratio and the revised definition has improved comparability and transparency.

Are there plans?

Regulatory amendments and new disclosure templates have been rolled out, with public reporting now standard.

Is it on the agenda?

The SARB/Prudential Authority have made this a key Basel III deliverable, with phased implementation and industry reporting.

Goals

To strengthen the leverage ratio as a backstop to risk-based capital requirements and enhance transparency.

Departments / Govt Institutions

South African Reserve Bank (SARB)

No data available for the deliverable: Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.

No data available for the deliverable: Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.

No data available for the deliverable: Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.

No data available for the deliverable: Implementation of the Basel III revised leverage ratio, including an updated exposure definition to better capture both on- and off-balance sheet risks.

Analyst: Tinashe Kambadza
Status: In progress
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