EU Leverage Ratio Gap

I used the stress test data to compute the gap between the leverage ratio and the risk-weighted ratio (CET1 ratio). The ECB data offers the leverage ratio data inputs. To measure the ratios by country, I used the totals of A3 and A4 for the CET1 ratio and the totals for A3 and A5 for┬áLeverage… Read More EU Leverage Ratio Gap

A bank capital proposal that hardly bites

Last Saturday, Professors Benink (Tilburg), Sanders (Utrecht), and Kool (Utrecht) of the Sustainable Finance Lab (a research outfit initiated by former Rabobank board of directors chair Herman Wijffels) presented a proposal for strengthening capital for banks in the Netherlands. The professors respond to the 4% leverage ratio proposal of the Dutch government. Instead of 4%,… Read More A bank capital proposal that hardly bites