Basel plans would weaken leverage ratio

Adoption of 'risk-sensitive' SA-CCR will allow more leverage, argues FDIC vice-chair

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Measure for measure: the existing leverage ratio is a robust standard of measurement

Thomas Hoenig is vice-chairman of the US Federal Deposit Insurance Corporation and former president of the Federal Reserve Bank of Kansas City

Standards of measurement are only useful if they are reliable and trusted. This is no less true for measuring the adequacy of bank capital than it is for measuring weights or distances. After years of unsuccessfully calculating bank capital using the ever-changing scale of risk-based capital, the Basel Committee on Banking Supervision finally turned to

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