The Reserve Bank of India has proposed new leverage ratio requirements for banks. Globally systemic important banks will face a minimum 3.5% ratio plus a buffer. Domestic systemically important banks will continue with their 4% ratio mandate. Other commercial banks will maintain the existing 3.5% leverage ratio. These proposals align with the Basel Committee on Banking Supervision's framework.

The Reserve Bank of India has proposed new leverage ratio requirements for banks. Globally systemic important banks will face a minimum 3.5% ratio plus a buffer. Domestic…

Under the draft directions, a branch of a G-SIB operating in India will be required to maintain a minimum leverage ratio of 3.5 per cent, along with the leverage ratio buffer…