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Which of the Following Statements Regarding Leverage Ratio Framework Are

Question 107

Multiple Choice

Which of the following statements regarding leverage ratio framework are untrue?


A) The leverage ratio complements the risk-weighted capital requirements by providing a safeguard against unsustainable levels of leverage.
B) The leverage ratio complements the risk-weighted capital requirements by mitigating gaming and model risk across both internal models and standardized risk measurement approaches.
C) The leverage ratio G-SIB buffer must be met with Tier 5 capital and is set at 10% of a G-SIB's risk weighted higher-loss absorbency requirements.
D) The leverage ratio buffer takes the form of a capital buffer akin to the capital buffers in the risk-weighted framework.
E) all of the above statements are true.

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