Bank Risk Leverage Risk
{"Image DocumentName": "Bank Risk Leverage Risk", "Image ImageDescription": "Leverage\u2014Combine debt with equity to purchase assets. Leveraging with debt increases risk because debt requires fixed payments in the future. The more leveraged a bank is, the less its ability to absorb a loss in asset value. Leverage Ratio\u2014Ratio of bank\u2019s equity capital to total assets [9% in 2002] Regulators in US and other countries impose risk-based requirements\u2014riskier the asset, higher the capital requirement.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}