...US GSIBs, which report Supplementary LRs (SLRs) calculated in line with international standards, have to reach a minimum 6% SLR at bank level and a 5% minimum SLR at holding company level. Switzerland has introduced a minimum 5% LR for its two GSIBs, to be phased in by end-2019. LRs reported by Credit Suisse (4.4%) and UBS (4.2%) are already well above 3%, making the regulator's demand for higher ratios less onerous for the Swiss banks than it would be for EU GTUBs. Both Swiss banks have substantially improved their LRs but will have to continue to build up capital and issue Additional Tier 1 instruments to meet final requirements. US-EU Comparisons Complicated The advantage of LR over risk weighted asset (RWA) requirements is simplicity because the LR is based on simple exposure measurements whereas RWA is dependent on modelling techniques and preferences at individual banks. But comparing LRs across EU countries and the US is complicated, especially because the structure of the US banking...
