Are deductions from bank capital always deductions?

This week Bloomberg’s Charles Penty and Angeline Benoit reported on Banco de España’s efforts to apply a waiver for capital deductions originating from Deferred Tax assets. Now, discussions on deductions from regulatory capital are often…

Like, it’s not that nothing has been done.

Note, the ratio values are over 0.08 (8%) – the max being 0.080 + 0.025 = 0.105 (10.5%). Graph made with GLE.

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…