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It is relatively difficult to accumulate the savings needed to pay cash for housing, and so homeownership will be less common than renting unless borrowing to purchase is made cheap and easy.Unfortunately, the introduction of leverage makes things messy.
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Regulators also called for the introduction of leverage-ratio limits, which would cap the total amount banks could lend out relative to their capital.
Jenkins said that he expects the PRA to accelerate the introduction of the leverage ratio, which he is aiming to reach by 2015, during discussions in July.
We support the introduction of a leverage ratio as a supplementary measure to the Basel II risk-based framework with a view to migrating to a Pillar 1 treatment based on appropriate review and calibration.
In a tax system with a loss offset restriction on corporate level, the introduction of a leverage-based IDR has an arbitrary effect on the investors' choice of legal form depending on the cash flows' distribution assumption.
The Basel Committee must finalise its proposals, including on the controversial introduction of a blanket leverage ratio (a capital requirement that is not risk-weighted).
The first is the introduction of an effective 5 percent leverage ratio — calculated as the equity capital of the operation divided by the total amount of assets.
Historically, design has played an important role in changing well-established cultural practices by leveraging the introduction of new technologies, or legitimising values, beliefs and social practices through its representations.
A test of the coefficients between the two periods has shown that the negative impact of leverage on broadband deployment has become stronger after the introduction of competition in the sector, and this has suggested that the change in the institutional logics between the two periods has been of material impact in influencing lenders' perceptions.
Few have that kind of leverage today.
The arithmetic of leverage proved inexorable.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com