Of Special Interest


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1st May 2015

Leverage ratio a constant conundrum for European and US banks, says SNL

JPMorgan Chase and Deutsche Bank have underlined the ongoing issues and challenges created by leverage and capital rules.

Writing to shareholders on 8th April, JPMorgan CEO Jamie Dimon highlighted the Fed's doubling of the G-SIB capital surcharge, taking it to 4.5 per cent of risk-weighted assets for JPMorgan. He questioned the scale of the increase, as well as the surcharge's relationship to systemic risk and to the complex measures already being introduced.

SNL Financial data show that banks on both sides of the Atlantic have significantly strengthened their capital, as reflected in leverage and common equity Tier 1 ratios. However, regulators' demands continue to rise almost inexorably, pressuring returns and capital management.

Read the Full Report: http://www.snl.com/InteractiveX/Article.aspx?cdid=A-32316223-12600