Updated leverage standards developed by the Basel Committee for Banking Supervision will be employed by the European Central Bank as it reviews balance sheets. "We'll use the leverage ratio as a way of cross-checking, but not in a binding way," explained Vitor Constancio, the vice president of the Central Bank. Recently, the Basel Committee responded to concerns over how its standards would affect lending by tweaking its plans for increasing the assets that banks must include on their balance sheets.

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