Citi Analysts Jason Shoup, Sonam T Pokwal and Swati Verma review the current regulatory confusion regarding the leverage ratio in banks, and the implications for their business after implementation.
An earlier article titled ‘UBS Investment Research – The Vexed Question of Leverage and European Investment Banks’ appeared in Valuewalk on September 17.
Inconsistent capital regimes
The leverage ratio could be implemented with ‘material differences’ between the U.S., the U.K. and the rest of Europe – i.e. three distinct capital regimes, in the words of the analysts. Differences...


