## Leverage—A Broader View

_IMF Working Papers, March 19, 2018_

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**Canonical URL:** [Leverage—A Broader View](https://www.imf.org/en/publications/wp/issues/2018/03/19/leverage-a-broader-view-45720)

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## Bibliographic details
- Authors: Manmohan Singh, Zohair Alam
- Published: March 19, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484347034.001

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### Core findings
- 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.

### Policy implications and recommendations
- 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.

### Publication and metadata
- 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

*Source: IMF Working Papers — "Leverage—A Broader View" by Manmohan Singh and Zohair Alam, March 19, 2018.*

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## Content in this bundle

- **Leverage—A Broader View, WP/18/62, March 2018**
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_Source: https://www.imf.org/en/publications/wp/issues/2018/03/19/leverage-a-broader-view-45720_