RBI relaxes leverage ratio in a boost to bank lending
- The leverage ratio has been reduced to 4% for domestic, systemically important banks, and 3.5% for other banks
- The relaxation could help some of the banks currently under PCA comply with the leverage framework
MUMBAI : The Reserve Bank of India (RBI) on Thursday relaxed the leverage ratio (LR) for banks in a bid to help them expand their lending activities. The leverage ratio stands reduced to 4% for Domestic Systemically Important Banks (DSIBs) and 3.5% for other banks.
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