Leverage
European Union Electricity Market Glossary

 


 

 

Leverage is defined in point (93) of Article 4(1) CRR as "the relative size of an institution's assets, off-balance sheet obligations and contingent obligations to pay or to deliver or to provide collateral, including obligations from received funding, made commitments, derivatives or repurchase agreements, but excluding obligations which can only be enforced during the liquidation of an institution, compared to that institution's own funds".

 

The introduction of this common definition supports supervisors in monitoring leverage and the appropriateness of institutions' leverage positions (Report on securities financing transactions and leverage in the EU Report prepared under the mandate in Article 29(3) SFTR, 4 October 2016, ESMA/2016/1415, p. 28).

 

 

 

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Last Updated on Monday, 14 November 2016 00:08
 

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