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.
The Basel Committee has also decided that systemically important financial institutions, commonly designated as “too big to fail”, will be required to have a higher loss absorbency capacity than other institutions that are subject to Basel III. The ways and means of achieving this are going to be deliberated next year.