Leverage Capital Ratios vs Risk-Based Capital Ratios of U.S. Banks, a graph.

Following up on my graph on corporate versus bank solvency ratios, this graph illustrates the difference between two Tier 1 ratios reported  by U.S. Bank Holding Companies over 2001-2012. The blue histogram shows the Tier…

ABN Amro’s dodgy spin-off readiness

Yesterday the Dutch government announced that it asked ABN Amro to prepare for re-floating on the stock market. The Dutch bank was nationalized in 2008 after the collapse of Fortis. With EU requirements on State support for ABN…

Solvency management by the denominators

One way a bank can manage its solvency is by changing the denominator of its solvency ratio, in this case of its BIS ratio. (The BIS ratio is the ratio of capital divided by Risk…