Leverage ratios

Measures of the relative value of stockholders, capitalization, and creditors obligations, and of the firm's ability to pay financing charges. Value of firm's debt to the total value of the firm (debt plus stockholder capitalization).

Leverage Ratio

In risk analysis, any ratio that measures a company's leverage. One example of a gearing ratio is the long-term debt/capitalization ratio, which is calculated by taking the company's long-term debt and dividing it by its long-term debt added to its preferred and common stock. Another example is a simple debt-to-equity ratio, which is calculated by dividing total debt by total equity. Generally, companies with higher leverage as determined by a leverage ratio are thought to be more risky because they have more liabilities and less equity. A leverage ratio is also called a gearing ratio or an equity multiplier.

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3% at September 30, 2017 while its estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.

United Bankshares reports Q3 EPS 54c, consensus 54c

The Bank of England (BoE) has announced that it will impose higher leverage ratios on banks.

Bank of England to impose higher leverage ratio on banks

The GHOS endorsed proposals from the Basel Committee on a common definition of the leverage ratio, which has been formulated to overcome differences in national accounting frameworks that have previously prevented ready comparison of bank leverage ratios across borders.

Basel Committee updates on regulatory reform

Supervisors are split over the usefulness of leverage ratios.

Banks must disclose reliance on debt from 2015 in basel plan

The announcement on leverage ratios took banks and building societies by surprise, as they had been preparing for a 2019 deadline on implementing the tougher new capital rules.

Building society reveals plans to raise PS1bn

BaE-cy said these banks could easily increase their leverage ratios.

Radar on bank leverages, market resilience, says central bank

Journal Register said it has amended its credit agreement with its lenders led by JPMorgan Chase Bank, lowering its borrowing limit to $150,000 from $200,000 and increasing the leverage ratios it will be allowed to maintain.

Journal Register Co. Gets a Little Debt Breathing Room

First, higher leverage ratios have been required for banks that have been downgraded on the basis of loan losses.

Statement by Richard F. Syron, President, Federal Reserve Bank of Boston, Before the Committee on Small Business, U.S. House of Representatives, July 2, 1992

-Separate leverage ratios for banking firms under consideration in the US

The apex bank said that leverage ratios still lag international rivals.

-Swiss National Bank welcomes move by banks to raise capital

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