The Leverage Ratio : A New Binding Limit on Banks

D'Hulster, Katia

World Bank, Washington, DC

关键词: ACCOUNTING;    ACCOUNTING PRINCIPLES;    ARBITRAGE;    ASSET BASE;    ASSET PRICES;   

RP-ID  :  53044

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Excessive leverage by banks is widelybelieved to have contributed to the global financial crisis.To address this, the international community has proposedthe adoption of a non-risk-based capital measure, theleverage ratio, as an additional prudential tool tocomplement minimum capital adequacy requirements. Itsadoption can reduce the risk of excessive leverage buildingup in individual entities and in the financial system as awhole. The leverage ratio has inherent limitations, however,and should therefore be considered as just one of a set ofmacro- and micro-prudential policy tools.