It seems unlikely the SLR will simply revert back to its pre-pandemic calculation and stay that way forever.
AFTER investors spent weeks brushing up on the specifics of the Federal Reserve’s (Fed) Covid-19 era changes to the supplementary leverage ratio (SLR), the central bank ultimately decided it was best to just let those exemptions expire as intended on March 31.
The Fed and other regulators announced Friday that they wouldn’t extend an emergency move that temporarily allowed banks to exclude US Treasuries and reserves at the central bank from the SLR denominator.
