Repo financing will hit buy-side more than the sell-side as banks start switching focus from ROE to ROA, reports Citi Research. Keith Horowitz and the team at Citi Research report that as banks move toward a leverage-based capital approach, banks will switch focus from maximizing ROE to ROA. Opportunities to enhance leverage ratios The eight biggest U.S. banks will need to hold twice as much equity capital as required globally under a new rule launched by U.S. regulators in July, intended to protect taxpayers from any future costly bailouts. The rule would impose a so-called leverage ratio which requires the…
Repo Financing To Hit Buy-Side More Than The Sell-Side: CITI
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports