The Leverage Ratio : A New Binding Limit on Banks
Excessive leverage by banks is widely believed to have contributed to the global financial crisis. To address this, the international community has proposed the adoption of a non-risk-based capital measure, the leverage ratio, as an additional prud...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/12/11800141/leverage-ratio http://hdl.handle.net/10986/10224 |
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okr-10986-102242021-04-23T14:02:49Z The Leverage Ratio : A New Binding Limit on Banks D'Hulster, Katia ACCOUNTING ACCOUNTING PRINCIPLES ARBITRAGE ASSET BASE ASSET PRICES ASSET-BACKED SECURITIES ASSET-LIABILITY MISMATCH ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BALANCE SHEET BANK EQUITY BANK FOR INTERNATIONAL SETTLEMENTS BANK HOLDING BANK HOLDING COMPANIES BANK HOLDING COMPANY BANKING CRISIS BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BROKER BROKER DEALER BROKER DEALERS BUSINESS CYCLE CAPITAL ACCORD CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH FLOWS CONSOLIDATION CORPORATE BONDS CORRECTIVE ACTION CREDIT EXPOSURES CREDIT INSTRUMENTS CREDIT PRODUCTS CREDIT RISK DEBT DEBT OBLIGATION DEPENDENT DERIVATIVES DIRECT INVESTMENT DOMESTIC CREDIT DOMESTIC CREDIT MARKET EMERGING-MARKET EQUITY FUND EXCHANGE COMMISSION EXPOSURE EXPOSURES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CRISIS FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FUTURE CASH FLOWS GLOBAL BANKING GLOBAL FINANCIAL SYSTEM HOLDING COMPANIES HOLDING COMPANY INDEBTEDNESS INDIVIDUAL BANK INDIVIDUAL BANKS INDIVIDUAL FIRM INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTANGIBLES INTERNATIONAL BANKING INVESTMENT BANK INVESTMENT BANKS JURISDICTION JURISDICTIONS LENDING PRACTICES LETTERS OF CREDIT LEVERAGE LEVERAGE RATIO LEVERAGE RATIOS LIABILITY LIQUIDITY LIQUIDITY RISK LOAN LOAN GUARANTEE LOAN LOSS LOAN LOSS PROVISIONS LONG-TERM ASSETS MARKET RISK MONETARY FUND MONETARY POLICY NET CAPITAL POLICY RESPONSE POLICY RESPONSES PORTFOLIO PORTFOLIOS PRIVATE SECTOR DEVELOPMENT PROMPT CORRECTIVE ACTION PRUDENTIAL REGULATION PUBLIC POLICY RECEIVABLES REGULATOR REGULATORY AGENCIES REGULATORY CAPITAL RESERVE BANK RESERVES RETURN RETURN ON EQUITY RISK PROFILE RISK PROFILES RISK SENSITIVITY SETTLEMENTS SHORT-TERM LIABILITIES SUBSIDIARIES SUPERVISORY AGENCY TAX TIER 1 CAPITAL TRANCHES TRANSACTION VALUATION WHOLESALE MARKETS Excessive leverage by banks is widely believed to have contributed to the global financial crisis. To address this, the international community has proposed the adoption of a non-risk-based capital measure, the leverage ratio, as an additional prudential tool to complement minimum capital adequacy requirements. Its adoption can reduce the risk of excessive leverage building up in individual entities and in the financial system as a whole. The leverage ratio has inherent limitations, however, and should therefore be considered as just one of a set of macro- and micro-prudential policy tools. 2012-08-13T10:46:45Z 2012-08-13T10:46:45Z 2009-12 http://documents.worldbank.org/curated/en/2009/12/11800141/leverage-ratio http://hdl.handle.net/10986/10224 English Crisis Response Note; No. 11 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ACCOUNTING PRINCIPLES ARBITRAGE ASSET BASE ASSET PRICES ASSET-BACKED SECURITIES ASSET-LIABILITY MISMATCH ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BALANCE SHEET BANK EQUITY BANK FOR INTERNATIONAL SETTLEMENTS BANK HOLDING BANK HOLDING COMPANIES BANK HOLDING COMPANY BANKING CRISIS BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BROKER BROKER DEALER BROKER DEALERS BUSINESS CYCLE CAPITAL ACCORD CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH FLOWS CONSOLIDATION CORPORATE BONDS CORRECTIVE ACTION CREDIT EXPOSURES CREDIT INSTRUMENTS CREDIT PRODUCTS CREDIT RISK DEBT DEBT OBLIGATION DEPENDENT DERIVATIVES DIRECT INVESTMENT DOMESTIC CREDIT DOMESTIC CREDIT MARKET EMERGING-MARKET EQUITY FUND EXCHANGE COMMISSION EXPOSURE EXPOSURES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CRISIS FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FUTURE CASH FLOWS GLOBAL BANKING GLOBAL FINANCIAL SYSTEM HOLDING COMPANIES HOLDING COMPANY INDEBTEDNESS INDIVIDUAL BANK INDIVIDUAL BANKS INDIVIDUAL FIRM INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTANGIBLES INTERNATIONAL BANKING INVESTMENT BANK INVESTMENT BANKS JURISDICTION JURISDICTIONS LENDING PRACTICES LETTERS OF CREDIT LEVERAGE LEVERAGE RATIO LEVERAGE RATIOS LIABILITY LIQUIDITY LIQUIDITY RISK LOAN LOAN GUARANTEE LOAN LOSS LOAN LOSS PROVISIONS LONG-TERM ASSETS MARKET RISK MONETARY FUND MONETARY POLICY NET CAPITAL POLICY RESPONSE POLICY RESPONSES PORTFOLIO PORTFOLIOS PRIVATE SECTOR DEVELOPMENT PROMPT CORRECTIVE ACTION PRUDENTIAL REGULATION PUBLIC POLICY RECEIVABLES REGULATOR REGULATORY AGENCIES REGULATORY CAPITAL RESERVE BANK RESERVES RETURN RETURN ON EQUITY RISK PROFILE RISK PROFILES RISK SENSITIVITY SETTLEMENTS SHORT-TERM LIABILITIES SUBSIDIARIES SUPERVISORY AGENCY TAX TIER 1 CAPITAL TRANCHES TRANSACTION VALUATION WHOLESALE MARKETS |
| spellingShingle |
ACCOUNTING ACCOUNTING PRINCIPLES ARBITRAGE ASSET BASE ASSET PRICES ASSET-BACKED SECURITIES ASSET-LIABILITY MISMATCH ASSETS BALANCE SHEET BALANCE SHEETS BANK ASSETS BANK BALANCE SHEET BANK EQUITY BANK FOR INTERNATIONAL SETTLEMENTS BANK HOLDING BANK HOLDING COMPANIES BANK HOLDING COMPANY BANKING CRISIS BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BROKER BROKER DEALER BROKER DEALERS BUSINESS CYCLE CAPITAL ACCORD CAPITAL ADEQUACY CAPITAL ADEQUACY REQUIREMENTS CAPITAL REQUIREMENT CAPITAL REQUIREMENTS CASH FLOWS CONSOLIDATION CORPORATE BONDS CORRECTIVE ACTION CREDIT EXPOSURES CREDIT INSTRUMENTS CREDIT PRODUCTS CREDIT RISK DEBT DEBT OBLIGATION DEPENDENT DERIVATIVES DIRECT INVESTMENT DOMESTIC CREDIT DOMESTIC CREDIT MARKET EMERGING-MARKET EQUITY FUND EXCHANGE COMMISSION EXPOSURE EXPOSURES FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CRISIS FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REFORMS FINANCIAL REPORTING FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FUTURE CASH FLOWS GLOBAL BANKING GLOBAL FINANCIAL SYSTEM HOLDING COMPANIES HOLDING COMPANY INDEBTEDNESS INDIVIDUAL BANK INDIVIDUAL BANKS INDIVIDUAL FIRM INSTRUMENT INTANGIBLE INTANGIBLE ASSETS INTANGIBLES INTERNATIONAL BANKING INVESTMENT BANK INVESTMENT BANKS JURISDICTION JURISDICTIONS LENDING PRACTICES LETTERS OF CREDIT LEVERAGE LEVERAGE RATIO LEVERAGE RATIOS LIABILITY LIQUIDITY LIQUIDITY RISK LOAN LOAN GUARANTEE LOAN LOSS LOAN LOSS PROVISIONS LONG-TERM ASSETS MARKET RISK MONETARY FUND MONETARY POLICY NET CAPITAL POLICY RESPONSE POLICY RESPONSES PORTFOLIO PORTFOLIOS PRIVATE SECTOR DEVELOPMENT PROMPT CORRECTIVE ACTION PRUDENTIAL REGULATION PUBLIC POLICY RECEIVABLES REGULATOR REGULATORY AGENCIES REGULATORY CAPITAL RESERVE BANK RESERVES RETURN RETURN ON EQUITY RISK PROFILE RISK PROFILES RISK SENSITIVITY SETTLEMENTS SHORT-TERM LIABILITIES SUBSIDIARIES SUPERVISORY AGENCY TAX TIER 1 CAPITAL TRANCHES TRANSACTION VALUATION WHOLESALE MARKETS D'Hulster, Katia The Leverage Ratio : A New Binding Limit on Banks |
| relation |
Crisis Response Note; No. 11 |
| description |
Excessive leverage by banks is widely
believed to have contributed to the global financial crisis.
To address this, the international community has proposed
the adoption of a non-risk-based capital measure, the
leverage ratio, as an additional prudential tool to
complement minimum capital adequacy requirements. Its
adoption can reduce the risk of excessive leverage building
up in individual entities and in the financial system as a
whole. The leverage ratio has inherent limitations, however,
and should therefore be considered as just one of a set of
macro- and micro-prudential policy tools. |
| format |
Publications & Research :: Brief |
| author |
D'Hulster, Katia |
| author_facet |
D'Hulster, Katia |
| author_sort |
D'Hulster, Katia |
| title |
The Leverage Ratio : A New Binding Limit on Banks |
| title_short |
The Leverage Ratio : A New Binding Limit on Banks |
| title_full |
The Leverage Ratio : A New Binding Limit on Banks |
| title_fullStr |
The Leverage Ratio : A New Binding Limit on Banks |
| title_full_unstemmed |
The Leverage Ratio : A New Binding Limit on Banks |
| title_sort |
leverage ratio : a new binding limit on banks |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2009/12/11800141/leverage-ratio http://hdl.handle.net/10986/10224 |
| _version_ |
1764412308430258176 |