UK leverage ratios stray from EU measures
Bank of England changes exempt central bank claims from UK measure, causing discrepancies with CRR version
UK and European Union measures of bank leverage diverged further over the six months to end-June, signalling that UK banks are stashing more cash with the Bank of England (BoE).
The average UK leverage ratio across Barclays, HSBC, Lloyds, RBS and Standard Chartered was 5.56% at end-June, whereas the average EU Capital Requirements Regulation leverage ratio across the same banks was 5%. The gap between the two measures widened by four basis points over the first half of the year.
The CRR
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