Article 511 › 4

The report referred to in paragraph 3 shall cover at least the period from 1 January 2014 until 30 June 2016 and shall take account of at least the following: (a) the impact of introducing the leverage ratio, determined in accordance with Article 429, as a requirement that institutions would have to meet on: (i) financial markets in general and markets for repurchase transactions, derivatives and covered bonds in particular; (ii) the robustness of institutions; (iii) business models and balance-sheet structures of institutions; in particular as regards low-risk areas of business, such as promotional credit by public development banks, municipal loans, financing of residential property and other low-risk areas regulated under national law; (iv) the migration of exposures to entities which are not subject to prudential supervision; (v) financial innovation, in particular the development of instruments with embedded leverage; (vi) institutions' risk-taking behaviour; (vii) clearing, settlement and custody activities and the operation of a central counterparty; (viii) cyclicality of the capital measure and the total exposure measure of the leverage ratio; (ix) bank lending, with a particular focus on lending to SMEs, local authorities, regional governments and public sector entities and on trade financing, including lending under official export credit insurance schemes; (b) the interaction of the leverage ratio with the risk-based own funds requirements and the liquidity requirements as specified in this Regulation; (c) the impact of accounting differences between accounting standards applicable under Regulation (EC) No 1606/2002, accounting standards applicable under Directive 86/635/EEC and other applicable accounting framework and other relevant accounting frameworks on the comparability of the leverage ratio.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04