The Leverage Ratio : A New Binding Limit on Banks

D'Hulster, Katia

Publication:
The Leverage Ratio : A New Binding Limit on Banks

dc.contributor.author	D'Hulster, Katia
dc.date.accessioned	2012-08-13T10:46:45Z
dc.date.available	2012-08-13T10:46:45Z
dc.date.issued	2009-12
dc.description.abstract	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.	en
dc.identifier	http://documents.worldbank.org/curated/en/2009/12/11800141/leverage-ratio
dc.identifier.uri	http://hdl.handle.net/10986/10224
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Crisis Response Note; No. 11
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ACCOUNTING
dc.subject	ACCOUNTING PRINCIPLES
dc.subject	ARBITRAGE
dc.subject	ASSET BASE
dc.subject	ASSET PRICES
dc.subject	ASSET-BACKED SECURITIES
dc.subject	ASSET-LIABILITY MISMATCH
dc.subject	ASSETS
dc.subject	BALANCE SHEET
dc.subject	BALANCE SHEETS
dc.subject	BANK ASSETS
dc.subject	BANK BALANCE SHEET
dc.subject	BANK EQUITY
dc.subject	BANK FOR INTERNATIONAL SETTLEMENTS
dc.subject	BANK HOLDING
dc.subject	BANK HOLDING COMPANIES
dc.subject	BANK HOLDING COMPANY
dc.subject	BANKING CRISIS
dc.subject	BANKING SECTOR
dc.subject	BANKING SUPERVISION
dc.subject	BANKING SYSTEM
dc.subject	BANKING SYSTEMS
dc.subject	BROKER
dc.subject	BROKER DEALER
dc.subject	BROKER DEALERS
dc.subject	BUSINESS CYCLE
dc.subject	CAPITAL ACCORD
dc.subject	CAPITAL ADEQUACY
dc.subject	CAPITAL ADEQUACY REQUIREMENTS
dc.subject	CAPITAL REQUIREMENT
dc.subject	CAPITAL REQUIREMENTS
dc.subject	CASH FLOWS
dc.subject	CONSOLIDATION
dc.subject	CORPORATE BONDS
dc.subject	CORRECTIVE ACTION
dc.subject	CREDIT EXPOSURES
dc.subject	CREDIT INSTRUMENTS
dc.subject	CREDIT PRODUCTS
dc.subject	CREDIT RISK
dc.subject	DEBT
dc.subject	DEBT OBLIGATION
dc.subject	DEPENDENT
dc.subject	DERIVATIVES
dc.subject	DIRECT INVESTMENT
dc.subject	DOMESTIC CREDIT
dc.subject	DOMESTIC CREDIT MARKET
dc.subject	EMERGING-MARKET
dc.subject	EQUITY FUND
dc.subject	EXCHANGE COMMISSION
dc.subject	EXPOSURE
dc.subject	EXPOSURES
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE BANK
dc.subject	FEDERAL RESERVE BANK OF NEW YORK
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL INNOVATION
dc.subject	FINANCIAL INSTITUTION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL REFORMS
dc.subject	FINANCIAL REPORTING
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	FUTURE CASH FLOWS
dc.subject	GLOBAL BANKING
dc.subject	GLOBAL FINANCIAL SYSTEM
dc.subject	HOLDING COMPANIES
dc.subject	HOLDING COMPANY
dc.subject	INDEBTEDNESS
dc.subject	INDIVIDUAL BANK
dc.subject	INDIVIDUAL BANKS
dc.subject	INDIVIDUAL FIRM
dc.subject	INSTRUMENT
dc.subject	INTANGIBLE
dc.subject	INTANGIBLE ASSETS
dc.subject	INTANGIBLES
dc.subject	INTERNATIONAL BANKING
dc.subject	INVESTMENT BANK
dc.subject	INVESTMENT BANKS
dc.subject	JURISDICTION
dc.subject	JURISDICTIONS
dc.subject	LENDING PRACTICES
dc.subject	LETTERS OF CREDIT
dc.subject	LEVERAGE
dc.subject	LEVERAGE RATIO
dc.subject	LEVERAGE RATIOS
dc.subject	LIABILITY
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY RISK
dc.subject	LOAN
dc.subject	LOAN GUARANTEE
dc.subject	LOAN LOSS
dc.subject	LOAN LOSS PROVISIONS
dc.subject	LONG-TERM ASSETS
dc.subject	MARKET RISK
dc.subject	MONETARY FUND
dc.subject	MONETARY POLICY
dc.subject	NET CAPITAL
dc.subject	POLICY RESPONSE
dc.subject	POLICY RESPONSES
dc.subject	PORTFOLIO
dc.subject	PORTFOLIOS
dc.subject	PRIVATE SECTOR DEVELOPMENT
dc.subject	PROMPT CORRECTIVE ACTION
dc.subject	PRUDENTIAL REGULATION
dc.subject	PUBLIC POLICY
dc.subject	RECEIVABLES
dc.subject	REGULATOR
dc.subject	REGULATORY AGENCIES
dc.subject	REGULATORY CAPITAL
dc.subject	RESERVE BANK
dc.subject	RESERVES
dc.subject	RETURN
dc.subject	RETURN ON EQUITY
dc.subject	RISK PROFILE
dc.subject	RISK PROFILES
dc.subject	RISK SENSITIVITY
dc.subject	SETTLEMENTS
dc.subject	SHORT-TERM LIABILITIES
dc.subject	SUBSIDIARIES
dc.subject	SUPERVISORY AGENCY
dc.subject	TAX
dc.subject	TIER 1 CAPITAL
dc.subject	TRANCHES
dc.subject	TRANSACTION
dc.subject	VALUATION
dc.subject	WHOLESALE MARKETS
dc.title	The Leverage Ratio : A New Binding Limit on Banks	en
dspace.entity.type	Publication
okr.doctype	Publications & Research :: Brief
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2009/12/11800141/leverage-ratio
okr.globalpractice	Finance and Markets
okr.globalpractice	Trade and Competitiveness
okr.identifier.externaldocumentum	000333038_20100217030735
okr.identifier.internaldocumentum	11800141
okr.identifier.report	53044
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2010/02/17/000333038_20100217030735/Rendered/PDF/530440BRI0Cris10Box345594B01PUBLIC1.pdf	en
okr.topic	Finance and Financial Sector Development :: Deposit Insurance
okr.topic	Banks and Banking Reform
okr.topic	Finance and Financial Sector Development :: Debt Markets
okr.topic	Private Sector Development :: Emerging Markets
okr.topic	Finance and Financial Sector Development :: Bankruptcy and Resolution of Financial Distress
okr.unit	Off Dir
okr.unit	Finan Sys Prac - WB (FFSDR)
okr.volume	1 of 1