Cline calculates that for US GSIBs the LR would come down from the present 7.1% to 5.6% or 5% with induced effects. This would increase the probability of crises and, in different scenarios, this could produce a GDP loss between 0.5 to 1.4%. 19 Cline, W. (2017), “The right balance for banks: theory and evidence on optimal capital”, Peterson International  Institute of Economics.
20 Goldstein, M. (2017), “Banking’s final exam: stress testing and bank capital reform”, Peterson International  Institute of Economics. 21 BCBS (2010) “An assessment of the long-term economic impact of stronger capital and liquidity requirements”.