Autor(es): Batista, Dina Raquel Pereira
Data: 2015
Identificador Persistente: http://hdl.handle.net/10362/15593
Origem: Repositório Institucional da UNL
Assunto(s): Banks; Leverage; Regulation; Pro-cyclicality; Domínio/Área Científica::Ciências Sociais::Economia e Gestão
This work analyses how the leverage ratio behaves through the cycle, vis-à-vis other capital ratios. For a sample of the largest Portuguese banks, the Basel III leverage ratio is indeed countercyclical. This result is relevant from a regulatory perspective, since the introduction of a limit on the leverage ratio will function as a restriction in the banks’ balance sheet size, reducing the economic costs associated with the excessive growth of leverage in periods of economic expansion followed by aggressive deleveraging in the downturn. However, one cannot exclude that restrictions on banks’ leverage incentivize its transference to less regulated intermediaries.
