Analysis: Focus on bank leverage will cut capital market liquidity, trading

08/6/2013 | International Financing Review (free content) · Reuters

The abrupt change in direction by regulators to focus on bank leverage ratios is likely to drain liquidity from the capital markets, cripple the financial sector's core trading business and force the most dramatic changes in investment banking in recent years. The change has the effect of encouraging acquisition of high-risk assets, creating an incentive to scale back low-risk activities.

View Full Article in:

International Financing Review (free content) · Reuters

Published in Brief: