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Leverage: SFT

The leverage exposure measure includes two separate amounts for securities financing transactions: the fair value of assets on the balance sheet, and an addon that captures uncovered counterparty expo

 
 
 
Introduction to Leverage

The leverage ratio is a bank's capital divided by the total size of its balance sheet and the commitments behind it. That denominator is the leverage exposure measure. Unlike the risk-based framework,

 
 
 

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