4

Countercyclical Leverage Ratio Buffer

4.1

A firm must calculate a countercyclical leverage ratio buffer of common equity tier 1 capital equal to:

  1. (1) the firm’s countercyclical capital buffer rate multiplied by 35% with the product expressed as a percentage rounded to the nearest tenth of a percentage; multiplied by
  2. (2) the firm’s total exposure measure.

4.2

A firm must not count common equity tier 1 capital that is maintained for the purposes of 3.1 towards the calculation in 4.1.