Kiema, Ilkka (contributor); Jokivuolle, Esa (contributor) - European Central Bank - 2014
Basel III has introduced a non-risk-weighted leverage ratio requirement (LRR) which complements the internal ratings based (IRB) capital requirements. It provides a backstop against model risk which arises if some loans get incorrectly rated and become toxic. We study the effects of the LRR on...
