Q. In Basel III, the leverage ratio is defined as:
Answer: Tier 1 capital to total assets
Notes: The leverage ratio under Basel III is calculated by dividing Tier 1 capital by the bank’s total exposure (on and off-balance sheet assets) without risk weighting.
Question Source: 📚This question is part of Banking Awareness - 2025-26 course in GKToday's Android Application. The Course comprises 2400+MCQs on Banking & General Financial Awareness with explanation for All Banking Exams of 2025-26 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations. Download the app here.
📌 Question Number: 4 in Basel Norms and Global Banking Standards in the above course in App.