IBANK 3.4.1 Introduction

The leverage ratio is a simple, transparent, non-risk-based measure to help restrict the build-up of leverage in the Islamic banking system. Excessive leverage can expose Islamic banking businesses to higher financial risk, with potential damage to the overall financial system, and to the economy if a de-leveraging process takes place.

Inserted by QFCRA RM/2019-7 (as from 1st January 2020).