Current Affairs Economy & Banking

RBI relaxes leverage ratio for banks

Category : Economy & Banking

  The Reserve Bank relaxed the leverage ratio (LR) to 4% for Domestic Systemically Important Banks (DSIBs) and 3.5% for other banks. This has been done to help them boost their lending activities. The reduced  leverage ratio will be effective from the quarter commencing October 1, 2019. The leverage ratio, as defined under Basel-III norms, is Tier-I capital as a percentage of the bank’s exposures.
Source: The Business Standard


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