CA-15.2.1

Bahraini conventional bank licensees must meet a 3% leverage ratio minimum requirement at all times, calculated on a consolidated basis.

CA-15.2.2

The leverage ratio is expressed as a percentage as follows:

The Numerator is Tier One Capital described in Paragraph CA-1.1.2. The Denominator is Total Exposures described in Section CA-15.3.

CA-15.2.3

The leverage ratio framework follows the same scope of regulatory consolidation for Tier One Capital and Total Exposures as is used in CA-B.1.2A, except as described in CA-15.2.4 below.

CA-15.2.4

Where a banking, financial, insurance or commercial entity is outside the scope of regulatory consolidation, only the investment in the capital of such entities (i.e. only the carrying value of the investment, as opposed to the underlying assets and other exposures of the investee) is to be included in the total exposures measure. However, investments in the capital of such entities that are deducted from Tier One Capital must also be deducted from the exposures measure for the purpose of the leverage ratio calculation.

CA-15.2.5

Bahraini conventional bank licensees identified as DSIBs must also meet a leverage ratio buffer requirement of 50% of HLA buffer (currently set at 1.5%), consistent with the capital measure required to meet the requirements of Module DS.