Over-time Risk-Based Capital Ratios and Leverage Ratios, U.S. banks
The WSJ and the FT this week reported on the leverage ratio. Over the summer, apparently, the leverage ratio has received more attention. The Risk-based Capital Ratio could explain this increased attention, as it relies on in-transparent risk weights. Look how it increased from 2008 on.
Is the increase credibly supported by increased solvency?
Graphs are made with GLE (Graphics Layout Engine), data of U.S. Bank Holding Companies, of first quarters of the fiscal year.
- Why Basel’s Latest Leverage Ratio Is Better (americanbanker.com)