5 Measured as the change in the cyclically adjusted primary balance. 6 7/8  BIS central bankers' speeches  6 Leverage ratio calculated as Tier 1 capital/Total assets. Source: Consolidated Banking Data for euro area banks  and FDIC data for US banks.
7 It should be noted that deleveraging was also more challenging in Europe than in the US, given the larger size  of bank balance sheets relative to GDP and less developed market-based finance. 8 Sapir, A. and Wolff, G. (2013), “ The neglected side of banking union: reshaping Europe’s financial system”,  note presented at the informal ECOFIN on 14 September 2013, Vilnius.