Basel Committee completes leverage ratio review across six markets
The Basel Committee on Banking Supervision has completed a new set of assessments on how six jurisdictions apply its leverage ratio framework. The review finds Australia, Japan, Korea and Switzerland fully compliant, while Canada and the UK rank one grade lower as largely compliant.
Highlights
- Basel Committee's assessment reports find Australia, Japan, Korea, and Switzerland fully compliant, while Canada and the UK are rated largely compliant with leverage ratio standards.
- The six-market review concludes the first round of multi-jurisdictional assessments under the Regulatory Consistency Assessment Programme to ensure consistent Basel standards implementation.
- In H1 2026, the Basel Committee will conduct further jurisdictional assessments focused on Basel III's risk-weighted asset revisions and ongoing leverage ratio reviews.
Assessment results and supervisory timeline
As reported by Bank for International Settlements, citing the Basel Committee, the Basel Committee today publishes assessment reports covering Australia, Canada, Japan, Korea, Switzerland and the UK under its leverage ratio framework.The committee says Australia, Japan, Korea and Switzerland meet its global standards at the highest overall grade of compliant. Canada and the UK receive a largely compliant rating, which sits one notch below the top grade.
These reviews are part of the Regulatory Consistency Assessment Programme, which examines whether Basel standards are implemented consistently and completely across member jurisdictions.
Implications for Basel III oversight
With the release of the six reports, the committee concludes the first round of multi-jurisdictional assessments of the leverage ratio. The move closes an initial phase of cross-border monitoring of a key bank capital safeguard.Under its current work programme, the committee also initiates jurisdictional assessments in H1 2026 covering Basel III revisions to risk-weighted assets, while it continues its review of leverage ratio implementation.
Our earlier report on regulators’ scrutiny of banks’ use of advanced AI described how U.S. and European supervisors are intensifying questions around cyber resilience, human oversight and banks’ ability to shut down autonomous systems. It also noted that authorities are pushing lenders to strengthen recovery planning and map AI dependencies across internal and third-party providers as operational risks rise.
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