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  • APPENDIX A: THE LEVERAGE RATIO IN THE MINNEAPOLIS PLAN

Appendix A: the leverage ratio in the Minneapolis plan

JANUARY 11, 2018 | by Federal Reserve Bank of Minneapolis | FEDERAL RESERVE BANK OF MINNEAPOLIS

Includes “A primary recommendation of the Minneapolis Plan is setting a minimum equity capital requirement for covered banks at 23.5 percent. This figure measures equity capital as a share of risk-weighted assets. We note that the equivalent leverage ratio is 15 percent of total assets. In this appendix, we explain why we recommend a leverage ratio target and how we calculate it.”

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