Leverage of U.S. Banks and Corporates, a graph.

There is lots of talk going on about bank leverage. But how does it look?

The plot below shows solvency ratios for U.S. banks (red) and U.S. corporates (blue).

It looks different.

Banks and Corporates

Note, these are observations for the U.S. over years 1985-2012. Solvency is defined as accounting equity divided by total assets.

Graphs are made with GLE (Graphics Layout Engine), with data from Compustat.

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One thought on “Leverage of U.S. Banks and Corporates, a graph.

  1. Pingback: Leverage Capital Ratios vs Risk-Based Capital Ratios of U.S. Banks, a graph. | Capital Issues

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