Their maxim for the past couple of years has been simple: the higher the capital ratio – specifically equity as a proportion of risk-weighted assets – the better.
The RAC ratio reflects Banks' leverage - asset volumes as a proportion of equity - and factors in greater risk-weightings on assets.
RAC比率反映银行的杠杆比率(资产在股本中所占比率),并在更大程度上计入资产的风险权重。
3
The ratio of assets to the equity of the five leading investment banks did increase greatly from about 23 in 2004 to the highly leveraged level of 30 in 2007.