A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

What is a leverage ratio? A leverage ratio is a financial measurement of debt. It puts an entity's debt into better context by showing it as a ratio relative to another financial metric like equity or ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over ...

Momentum is building to improve capital rules. Recently, Federal Reserve Chair Janet Yellen publicly acknowledged that aspects of the banking agencies’ supplementary leverage ratio “may be having ...

The rationale for a higher benchmark is clear but regulators must clarify its role, alongside a risk-based capital regime, to reduce distortions and save the securities-financing market from a ...

The debate over whether to use a simple leverage ratio or more complex risk-weighted capital calculations to determine an adequate capital base shouldn’t be an either-or debate, writes Brookings ...

Regarding Thomas Hoenig’s “Why ‘Risk-Based’ Capital Is Far Too Risky” (op-ed, Aug. 12): Mr. Hoenig takes issue with our criticism of the leverage ratio, arguing, “The leverage ratio has proven most ...

A Commission Implementing Regulation which amends implementing technical standards on supervisory reporting of institutions as regards the reporting of the leverage ratio, was published in the ...

Following the 2008 financial crisis, regulators across the globe have pondered how to ameliorate systemic risk in derivatives markets. At the 2009 G-20 summit, international regulators committed to ...

WASHINGTON A proposal by U.S. regulators to raise the leverage ratio at the biggest bank holding companies and their subsidiaries is already drawing fire from both sides of a raging debate about how ...

Leverage ratios compare a company's debt to financial metrics like equity or earnings. High leverage ratios suggest potential default risks, guiding investors on company selection. Industry-specific ...