Prudential Regulation Authority Rulebook

3.1

Subject to 4.1, a firm must complete the data item FSA083 using the template for the data item set out here.

3.2

When completing the data item in 3.1, the average leverage ratio for a quarter must be calculated by a firm as its capital measure divided by its exposure measure where the:

1. (1) capital measure is the arithmetic mean of the firm’s tier 1 capital on the last day of each month in the quarter ending on the relevant quarterly reference date; and
2. (2) exposure measure is the sum of:
1. (a) the arithmetic mean of the firm’s total exposure measure in relation to on-balance sheet assets on each day in the quarter ending on the relevant quarterly reference date; and
2. (b) the arithmetic mean of the firm’s total exposure measure excluding on-balance sheet assets on the last day of each month in the quarter ending on the relevant quarterly reference date.