For instance, recent research based on European alternative investment funds has shown that 19 / 20  BIS central bankers' speeches  leveraged funds experience greater investor outflows after bad performance than unleveraged funds.10 By limiting leverage we would be able to reduce these propagation mechanisms in times of stress.
Looking ahead, our focus will be on ensuring continuing progress in the deleveraging of non-core assets. It also makes sense to continue assessing the case for the possible transfer of poor performing or hard to value core assets out of the banking system, although this depends upon providing a solution for an appropriate structure for this, in terms of funding and cost more generally.