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The FSA reconstructed the bank's balance sheet using new rules (known as Basel 3) that give banks far less wriggle room to massage numbers and found that RBS's actual capital was only about 2% of assets.How RBS calculated its numbers is a lesson against giving banks too much discretion in calculating key ratios that are relied upon by investors and providers of credit.
Life on Earth today is possible only because the key ratios are exactly right.
Getting a few key ratios right would put us on the path.
We'll be covering most of these financial statistics and key ratios in Part 7 of this series, where we do some analysis of the numbers.
We assess the effect that the presence of heavy minerals has on sediment chemistry by plotting key ratios against one another.
Of course, a good hedge for stock owners would be to merely buy some VIX futures (VIX is a sentiment gauge where the key ratios are puts to calls, and measures of implied volatility for broad indexes), for they would surely rocket upward in any sort of severe market decline.
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Its key ratio, CET1, rose to 16.3% from 14.5%, which is substantially above the minimum required.
Countries can keep that key ratio from increasing, by running primary surpluses to compensate.
In the eyes of Pierre Cailleteau, Moody's chief economist, the key ratio is not debt-to-GDP but interest payments as a proportion of government revenues.
Other scholars, seeking precision, suggested a key ratio: the top 7 percent of the nonfarm population gained at a cost to the rest, the bottom 93 percent.
The problem now is not that the world is running out of energy but that the new sources of energy are more expensive to exploit.The key ratio is "energy return on energy invested".
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Justyna Jupowicz-Kozak
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