The Vexed Question of Leverage and European Investment Banks

Analysts Daniele Brupbacher, John-Paul Crutchley, Nick Davey, Anton Kryachok and Mate Nemes examine the impact of upcoming statutory stipulations regarding leverage on select European banks in their report dated September 16, 2013. Basel 3 leverage ratio stipulations The analysts are unequivocal in their view that Basel 3 leverage ratio stipulations will impose a heavy toll on banks’ abilities to promote growth and maintain dividend payments. But, in all fairness, they point to the increasingly strident arguments both for and against leverage ratios, as well as the plethora of definitions that surround a deceptively simple financial ratio. Proponents for the ratios…