5.The Central Bank leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (the denominator), with this ratio expressed as a percentage:

6.The capital measure for the leverage ratio is Tier 1 capital – comprising Common Equity Tier 1 and/or Additional Tier 1 instruments – as defined in the Central Bank’s Capital Supply Standards.

7.Both the capital measure and the exposure measure are to be calculated on a quarter-end basis. However, banks may, subject to Central Bank approval, use more frequent calculations (e.g. daily or monthly averaging) as long as they do so consistently.

8.Banks must at all times maintain a leverage ratio that equals or exceeds the minimum required leverage ratio as specified in UAE regulations.