*  *  *  Ladies and gentlemen of the Lions Club of Bombay, Thank you very much for giving me an opportunity to share my thoughts with you all. Only Lions would be courageous enough to listen to a talk on the subject of banking which is dry and devoid of any humour.
Leverage was also implicit in the structure of derivatives and options extensively used in proprietary tradings of financial institutions. Revaluation of  BIS Review 72/2010  3  assets also boosts bank capital in booms and shrinks it in downturns, reducing its capacity to lend in recession.