The China Banking Regulatory Commission ("CBRC") has revised and issued the Measures for the Administration of Leverage Ratio of Commercial Banks (the "Measures") for public comment by December 20, 2014.
The revised Measures, composed of 25 articles in five chapters and three attachments, clarify the basic principles of the supervision of leverage ratio, calculating method for leverage ratio, disclosure requirements, supervision management, etc. The three attachments are the Calculating Method for the Balance of Derivative Product Assets, Calculating Method for the Balance of Securities Financing Transaction Assets and Template for the Disclosure of Leverage Ratio. Specifically, the revised Measures make further adjustment to the calculating methods for on-and-off-balance-sheet assets (denominator of the leverage ratio) after the adjustment while maintaining the original basic framework and supervision requirements on leverage ratio.