Results 221 to 230 of about 90,787 (269)

A leverage ratio rule for capital adequacy

Journal of Banking & Finance, 2012
Abstract This paper studies the economic foundations for maximum leverage ratio capital adequacy rules. The paper makes three contributions to the literature. First, we show how to determine the maximum leverage ratio such that the probability of insolvency is less than some predetermined quantity. Two, we show that a leverage ratio rule controls for
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Benefits and Costs of a Higher Bank Leverage Ratio

SSRN Electronic Journal, 2017
This study reports estimates of the marginal benefits and costs of increasing the regulatory minimum bank equity-to-asset “leverage ratio” from 4 to 15 percent. Benefits arise from reducing the probability of a banking crisis. Costs arise from reduced lending, should banks pass off higher equity costs onto borrowers. Net benefits increase with a higher
James R. Barth, Stephen Matteo Miller
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Analyzing the Community Bank Leverage Ratio

FEDS Notes, 2020
This note analyzes the newly introduced Community Bank Leverage Ratio ("CBLR") framework. The analysis covers the framework's eligibility, its capital stringency, and its potential impact on system-wide capital levels under a hypothetical adverse scenario.
Carlo Wix, Bert Loudis, Daniel Nguyen
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Leverage Ratio (Verschuldungsquote)

2016
Die weltweite Finanzmarktkrise fuhrte zu einer weiteren Vertiefung der Bankenregulierung. Die Leverage Ratio oder Verschuldungsquote wurde als neues Instrument im Rahmen des Reformpakets Basel III vom Basler Ausschuss fur Bankenaufsicht (BCBS) prasentiert. Diese Kapitalquote wendet sich wieder von der Risikogewichtung der Vermogenswerte gem.
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On the relation between the market-to-book ratio, growth opportunity, and leverage ratio

Finance Research Letters, 2006
Abstract The negative relation between the market-to-book ratio and leverage ratio is one of the most widely documented empirical regularities in the capital structure literature. Most related studies take this negative relation as given and debate about its economic interpretation. We show that firms with higher market-to-book ratios face lower debt
Long Chen, Xinlei Shelly Zhao
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Public Disclosures: Leverage Ratios

SSRN Electronic Journal, 2014
The public disclosure requirements include:- a summary comparison table that provides a comparison of banks’ total accounting assets amounts and leverage ratio exposures;- a common disclosure template, which as previously discussed, provides abreakdown of the main leverage ratio regulatory elements;- a reconciliation requirement that details the source(
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Supplementary Leverage Ratio and Repo Supply

SSRN Electronic Journal, 2016
While simpler than risk-based capital requirements, the leverage ratio may encourage bank risk-taking. This paper examines the activity of broker-dealers affiliated with bank holding companies (BHCs) and broker-dealers not affiliated with BHCs in the repurchase agreement (repo) market to test whether this may be occurring.
Meraj Allahrakha, Jill Cetina, Benjamin K. Munyan   +2 more
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The leverage ratio over the cycle [PDF]

, 2014
This paper analyses how the Basel III leverage ratio (Tier 1 capital/exposure) behaves over the cycle. The analysis proposes a setup to test for the cyclical properties of bank capital ratios, taking into account structural shifts in banks' behaviour during the global financial crisis and its aftermath.
Michael Brei, Leonardo Gambacorta
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Leverage Ratios and the Construction of Regulatory Knowledge

2022
Abstract This chapter examines the definition, application, and implications of leverage ratios in the regulatory framework, focusing on their role in measuring bank size and the adequacy of loss-absorbing capital. It explains how Basel 3 imposes a binding leverage ratio to act as a backstop to risk-weighted measures, compelling banks to
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Mechanical mean reversion of leverage ratios

Economics Letters, 2007
Abstract The leverage ratio of an average firm reverts to mean mechanically regardless of whether target leverage exists. This cautions against studies that use the ability of the leverage ratio (or deviation from target leverage) to predict future leverage changes to draw inference on capital structure theories.
Long Chen, Xinlei Zhao
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