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.

Overtime behvior of ratios

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.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s