5.1	The Leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (the denominator). This ratio should be expressed as a percentage.
5.2	Capital measure for Leverage ratio is Tier 1 regulatory capital1, which include common equity Tier 1 and Additional Tier 1 Capital as defined in in the Finalized Guidance Document Concerning the Implementation of Basel III issued by SAMA circular No. 341000015689 Dated 19 December 2012 and any subsequent adjustments.
5.3	The exposure measure for the Leverage ratio should generally follow gross accounting value unless different treatment is specifically mentioned in this framework.
5.4	Exposure measure should include the following exposures:
	(i)	On-balance sheet exposures (excluding on-balance sheet derivative and securities financing transaction exposures);
	(ii)	Derivative exposures;
	(iii)	Securities financing transaction (SFT) exposures; and
	(iv)	Off-balance sheet (OBS) items.
5.5	The leverage ratio (Capital measure and Exposure measure) must be calculated and reported to SAMA on a quarter-end basis.
5.6	Banks' Leverage ratio must be at least 3% at all time.

¹ In other words, the capital measure used for the Leverage ratio at any particular point in time is the Tier 1 capital measure applicable at that time taking into consideration all regulatory adjustments allowed by SAMA from time to time.