Therefore, it has to be emphasised in this context that a simple ROE ratio, if not adjusted to leverage (and risk), can provide totally misleading signals for investors. In fact, part of the high ROE ratios reported by banks before the crisis was due to high leverage and high risk.
It will also be a good occasion to test how the financial market players understand our preferences about risk needed for the balance of our financial system. BIS Review 58/2010  3