Leverage—A Broader View
Author | : Mr.Manmohan Singh |
Publisher | : International Monetary Fund |
Total Pages | : 28 |
Release | : 2018-03-19 |
ISBN-10 | : 9781484348307 |
ISBN-13 | : 1484348303 |
Rating | : 4/5 (07 Downloads) |
Download or read book Leverage—A Broader View written by Mr.Manmohan Singh and published by International Monetary Fund. This book was released on 2018-03-19 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Traditional measures of leverage in the financial system tend to reflect bank balance sheet data. The paper argues that these traditional, bank-centric measures should be augmented by considering pledged collateral in the financial system since pledged collateral provides a measure of an important part of nonbank funding to banks. From a policy perspective, the paper suggests that a broader view on leverage will enhance our understanding of global systemic risk, and complement the theoretical work in this field by providing a link from micro-level leverage data to macro aggregates such as credit to the economy.