‘Basel Committee Loosens Leverage Ratio,’ Global Risk Regulator, Vol 12, Issue 2

Mayra Rodriguez Valladares, managing principal of regulatory consulting firm MRV Associates said: “Studies last year confirmed the industry’s worst kept secret that there is a tremendous amount of flexibility in risk weightings. If the banks keep demonstrating that their risk weighted assets are much lower than what the Basel Committee thinks they should be, then it will have more appetite to increase the leverage ratio.”