AI Summary of Article 511 Leverage
The Commission is mandated to submit a report to the European Parliament and the Council by 31 December 2020, evaluating the potential introduction of a leverage ratio surcharge for Other Systemically Important Institutions (O-SIIs). Additionally, the report will assess the current definition and calculation of the total exposure measure, as delineated in Article 429(4), particularly regarding the treatment of central bank reserves.
In preparing this report, the Commission will consider international developments and agreed-upon standards, with an emphasis on aligning with best regulatory practices. Should it be deemed appropriate, the report may also include a legislative proposal to effect necessary changes.
Article 511 Leverage
1. The Commission shall by 31 December 2020 submit a report to the European Parliament and to the Council on whether:
(a) it is appropriate to introduce a leverage ratio surcharge for O-SIIs; and
(b) the definition and calculation of the total exposure measure referred to in Article 429(4), including the treatment of central bank reserves, is appropriate.
2.For the purposes of the report referred to in paragraph 1, the Commission shall take into account internat ional developments and internationally agreed standards. Where appropriate, that report shall be accompanied by a legislative proposal.