The Bank of England will review the full set of powers that it needs to limit the debt level of banks. In a letter to BoE Governor Mark Carney, the Chancellor of the Exchequer George Osborne on Tuesday said now is an appropriate time for the Financial Policy Committee to consider whether and when it needs any additional powers of direction over the leverage ratio. The FPC will be finalizing the capital framework for UK banks over the next 12-18 months and the leverage ratio will be a critical part of the capital framework for banks. In his response, Carney said the review will also need to assess how the leverage standard should apply to ring-fenced banks. A minimum leverage ratio is a vital component of the overall capital framework. Carney expects the FPC to complete its review within 12 months and the Basel Committee will finalize its definitions for the leverage ratio by early 2014.