Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …

. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank … stock prices and credit default swap spreads. Overall, bank stock prices reflect a negative capitalization of government … reduction in their market valuation in countries running large fiscal deficits. Furthermore, the change in bank credit default …

mechanism by which government interventions contribute to banks' risk-shifting behavior as reported in recent studies on bank … level runs via competition. (iv) Government interventions disparately affect bank customers' welfare. While liquidity …