JOURNAL ARTICLE
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Leverage Ratios for Different Bank Business Models
Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 4 : pp. 545–573
2 Citations (CrossRef)
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David Grossmann, MBA, PhD-student at Andrássy University Budapest and Claussen-Simon Graduate Centre at HSBA, Alter Wall 38, 20457 Hamburg, Germany
Cited By
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The golden rule of banking: funding cost risks of bank business models
Grossmann, David | Scholz, PeterJournal of Banking Regulation, Vol. 20 (2019), Iss. 2 P.174
https://doi.org/10.1057/s41261-018-0080-5 [Citations: 4] -
The Golden Rule of Banking: Funding Cost Risks of Bank Business Models
Groomann, David | Scholz, PeterSSRN Electronic Journal , Vol. (2017), Iss.
https://doi.org/10.2139/ssrn.3086828 [Citations: 0]
Abstract
The development of the Basel III leverage ratio does not consider the different risk characteristics of bank business models. All banks have to achieve the same requirements even if a high-risk business model is chosen. For that reason, leverage ratios which are adjusted to the risk-profile of retail, wholesale, and trading banks are developed. Based on Value-at-Risk and Expected Shortfall calculations, the left-hand tail of a net return on non-risk-weighted assets distribution of 120 European banks is analyzed. Retail banks are less risky and can withstand financial distress with a smaller amount of capital.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| David Grossmann: Leverage Ratios for Different Bank Business Models | 1 |