Publication
2 Dec 2011
In this commentary, the author supports the adoption of the Basel III ratio of tangible equity (or leverage ratio) as a criterion for the analysis of the capital needs of the EU banking sector, as opposed to the core Tier-1 ratio. It is argued that the calculations behind the core Tier-1 ratio are non-transparent, unintelligible and prone to misuse.
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English (PDF, 2 pages, 86 KB) |
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| Author | Karel Lannoo |
| Series | CEPS Commentaries |
| Publisher | Centre for European Policy Studies (CEPS) |
| Copyright | © 2011 Centre for European Policy Studies (CEPS) |