The central bank has directed all banks to get prepared to increase leverage ratio 0.25 per cent annually from 2023 in line with Basel-III.
According to a circular issued by the central bank on Wednesday, the banks will be required to preserve 4.0-per cent leverage ratio in 2026 from the existing 3.0 per cent.
The Bangladesh Bank says the year 2022 is the preparation year for increasing leverage ratio from 3.0 per cent to 4.0 per cent to keep pace with the international best practice.
The Basel-III introduced a minimum "leverage ratio".
The leverage ratio was calculated by dividing tier-01 capital by the bank's average total consolidated assets.
The banks were expected to maintain a leverage ratio in excess of 3.0 per cent under Basel-III.
