Full use of the observation period should be made to identify any such implications and to prevent the new measures from having any unintended consequences. Furthermore, since the leverage ratio is largely based on accounting information, the accounting standard-setters should strengthen their efforts to eliminate existing accounting differences. This is essential in order to ensure a level playing field.
Work is also still underway on ensuring the loss-absorbency of all regulatory capital at the point of non-viability. The Basel Committee has also decided at the level of Governors and Heads of Supervision that systemically important financial institutions will be required to have a higher loss absorbency capacity than the other institutions that are subject to Basel III.