IBANK 3.4.3 How to calculate leverage ratio

An Islamic banking business firm's leverage ratio LR is calculated by means of the following formula:

where:

tier 1 capital has the meaning given by rule 3.2.7 (2).

total exposure measure is the total amount of all the firm's exposures, calculated in accordance with rules 3.4.5 to 3.4.8.

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