Report: Leverage ratios to put pressure on European banks

12/7/2009 | Financial Times (tiered subscription model)

The banking industry expects the Basel Committee on Banking Supervision to discuss setting leverage ratios that would not allow a bank's total balance sheet to exceed 25 times its equity in addition to other Tier 1 capital. This regulatory limit would force Europe's largest banks to either use much of their profits to build up capital or reduce their balance sheets, said analysts at CA Cheuvreux.

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