India sets new bank leverage requirements
The Reserve Bank of India issued final rules on October 23 setting a 3.5% minimum leverage ratio for globally systemically important banks operating in the country.
Reuters published the announcement at 11:37 UTC. The requirements will take effect on April 1, 2027. The RBI rejected banks' requests to align the minimum with the 3% Basel standard.
The leverage ratio measures Tier 1 capital relative to total assets. Banks failing to meet the requirement could face restrictions on capital distributions and profit repatriation. The rules are intended to strengthen financial resilience, although they may limit capital flexibility for affected lenders.
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