The aggregate tier one common capital ratio - assets held in reserve as a buffer against financial troubles - would fall from an actual 11.1% in the third quarter of 2012 to 7.7% in the fourth quarter of 2014 in the hypothetical stress scenario.
On the one hand, the ratio of capital to assets would be boosted very significantly in "good" RBS, because some loans and investments with very high risk weights (in the jargon) would have been detached.
Leverage is the ratio of capital to liabilities (or to assets perhaps) but it is not, never has been and never will be any ratio of assets to umm, assets, as is being claimed here.
It's yielding 4.8% and has a fortresslike tangible equity ratio (capital minus intangible assets) of 13.9%.
The problem is that until banks have all the capital they need, and as I have already mentioned, all the banks will be sorely tempted to boost the ratio of their capital to assets by lending less, to shrink the denominator in the calculation.
Since the middle of 2007, Morgan Stanley has raised about twenty billion dollars in new capital and cut in half its leverage ratio the total value of its assets divided by its capital.
Kalamazoo has a 14% capital ratio and 39% of its assets in cash and securities.
The report also noted that Raymond James Bank's ratio of capital to risk-weighted assets was a healthy 10.2%.
On Dexia, it was only on July 15 that the European Banking Authority disclosed that this retail and public-sector finance bank would have a ratio of core Tier One capital to assets of 10.4%, even after incurring notional losses from harsh simulated financial and economic conditions.
Along with five others, they had been forced to draw up restructuring plans after falling short of the 8% ratio of capital to risk-weighted assets that is considered the acceptable minimum by international financial regulators (by more than six percentage points in the case of Commercial Bank of Korea).
Requiring banks to maintain a ratio of 10 percent of equity capital to total assets would make them less likely to need a government bailout in the next financial crisis.
Mr Miles said that the optimal ratio of core tier one equity capital to risk-weighted assets would be 19%.
Its ratio of assets (loans and investments) to loss-absorbing equity capital is a fraction over 20 times, down from 50 times in the autumn of 2008, when it was rescued from the brink by taxpayers.
It will suggest incorporating a leverage ratio into bank-capital requirements, to supplement the existing risk-weighting of assets.
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