Some evidence points to the procyclicality of leverage among financial institutions leading to aggregate volatility … adjust their leverage. As such, financial institutions that rely on wholesale funding are expected to have higher degrees of … leverage procyclicality. Using high frequency balance sheet data for the universe of banks, this study tries to identify (i) if …

appears that a cyclical bias in measures of risk-adjusted capital contributed to procyclical increases in global leverage … prior to the recent financial crisis. As such, international policy discussions are considering an unweighted leverage ratio …, having been subject to a regulatory ceiling on an unweighted leverage ratio since the early 1980s. The authors review lessons …