China Banking Regulatory Commission, Measures for the Administration of the Leverage Ratio of Commercial Banks (Revised)

Promulgated: January 30 2015
Effective: April 1 2015

Main contents: The main revisions made to the Measures maintain consistency with the revisions to the international leverage ratio rules made by the Basel Committee, and further clarify the method of calculating the exposure to derivatives and securities financing transactions. Additionally, they put forth clearer and stricter requirements in respect of the disclosure by commercial banks of their leverage ratios (Articles 12 and 13).

The amended Measures no longer require the use of a 100% credit conversion factor for off-balance sheet items such as accepted bills, guarantees, documentary letters of credit and trade financing, replaced instead, based on the specific item, by a 10%, 20%, 50% or 100% credit conversion factor respectively (Article 14).