{
  "title": "Leverage—A Broader View",
  "publication": "IMF Working Papers, March 19, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/03/19/leverage-a-broader-view-45720",
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  "summary": "Traditional measures of leverage in the financial system tend to reflect bank balance sheet data. The paper argues that these traditional, bank-centric measures should be augmented by considering pledged collateral in the financial system since pledged collateral provides a measure of an important p",
  "sections": [
    {
      "heading": "Core findings",
      "content": "- Traditional measures of leverage in the financial system tend to reflect bank balance sheet data.\n- The paper argues that these traditional, bank-centric measures should be augmented by considering pledged collateral in the financial system since pledged collateral provides a measure of an important part of nonbank funding to banks.\n- From a policy perspective, the paper suggests that a broader view on leverage will enhance our understanding of global systemic risk, and complement the theoretical work in this field by providing a link from micro-level leverage data to macro aggregates such as credit to the economy."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Augment bank-centric leverage measures with measures of pledged collateral to capture nonbank funding to banks.\n- Use a broader view on leverage to enhance understanding of global systemic risk.\n- Leverage measures that link micro-level leverage data to macro aggregates such as credit to the economy can complement theoretical work in the field."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Title: Leverage—A Broader View\n- Authors: Manmohan Singh, Zohair Alam\n- Date: March 19, 2018\n- Series: Working Paper No. 2018/062\n- Issue: 062\n- Volume: 2018\n- Pages: 28\n- DOI: https://doi.org/10.5089/9781484347034.001\n- Stock No: WPIEA2018062\n- ISBN: 9781484347034\n- ISSN: 1018-5941\n- Subject: Accounting standards; Bank credit; Banking; Collateral; Commercial banks; Financial institutions; Financial statements; Money; Public financial management (PFM)\n- Keywords: Accounting standards; Bank credit; bank leverage; bank-nonbank nexus; Collateral; Commercial banks; financial stability; Financial statements; Global; leverage ratio; nonbank funding; nonbank leverage; nonbank relationship; nonbank-bank nexus; off-balance sheet; pledged collateral; regulations; WP\n\nSource: IMF Working Papers — \"Leverage—A Broader View\" by Manmohan Singh and Zohair Alam, March 19, 2018.\n\n---\n\n Content in this bundle\n\n- Leverage—A Broader View, WP/18/62, March 2018\n  - Leverage—A Broader View, WP/18/62, March 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Leverage—A Broader View, WP/18/62, March 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/03/19/leverage-a-broader-view-45720"
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    "Authors: Manmohan Singh, Zohair Alam",
    "Published: March 19, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484347034.001",
    "Traditional measures of leverage in the financial system tend to reflect bank balance sheet data.",
    "The paper argues that these traditional, bank-centric measures should be augmented by considering pledged collateral in the financial system since pledged collateral provides a measure of an important part of nonbank funding to banks.",
    "From a policy perspective, the paper suggests that a broader view on leverage will enhance our understanding of global systemic risk, and complement the theoretical work in this field by providing a link from micro-level leverage data to macro aggregates such as credit to the economy.",
    "Augment bank-centric leverage measures with measures of pledged collateral to capture nonbank funding to banks.",
    "Use a broader view on leverage to enhance understanding of global systemic risk.",
    "Leverage measures that link micro-level leverage data to macro aggregates such as credit to the economy can complement theoretical work in the field.",
    "Title: Leverage—A Broader View",
    "Authors: Manmohan Singh, Zohair Alam",
    "Date: March 19, 2018",
    "Series: Working Paper No. 2018/062",
    "Issue: 062",
    "Volume: 2018",
    "Pages: 28",
    "DOI: https://doi.org/10.5089/9781484347034.001",
    "Stock No: WPIEA2018062",
    "ISBN: 9781484347034",
    "ISSN: 1018-5941",
    "Subject: Accounting standards; Bank credit; Banking; Collateral; Commercial banks; Financial institutions; Financial statements; Money; Public financial management (PFM)",
    "Keywords: Accounting standards; Bank credit; bank leverage; bank-nonbank nexus; Collateral; Commercial banks; financial stability; Financial statements; Global; leverage ratio; nonbank funding; nonbank leverage; nonbank relationship; nonbank-bank nexus; off-balance sheet; pledged collateral; regulations; WP",
    "**Leverage—A Broader View, WP/18/62, March 2018**"
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