Expert article
Autor: Vesna Matić PhD
SCINDEX
Summary: Leverage, as a measure of risk and its possible influence on capital of the bank in the conditions of uncertainty and high financial risk, which are especially present in the times of crisis, was the subject considered by the Basel Committee. The purpose of the revised leverage ratio, which has been built in the Basel III, is to prevent deterioration of the relation between capital value of the bank and the value of its risk exposure, and at the same time to be transparent, simple to use and a credible supplementary measure to the risk-based capital requirements.