Oireachtas Joint and Select Committees

Wednesday, 16 January 2013

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Matters Relating to the Economy: Discussion with Governor of Central Bank

4:20 pm

Professor Patrick Honohan:

I see the overall leverage ratio, which is attractive in an American context, as a useful additional measure. The risk-weighting can be gamed, while the simple leverage ratio which cannot be so easily be gamed, is crude. We can require them to have both.