•  Third, a non risk-based leverage ratio will supplement risk-based capital requirements and help to curb excessive balance sheet growth.
As firms (or markets) mature, external 2  BIS central bankers’ speeches  funds raised through bond and equity markets become more important. Also, while marketbased systems help alleviating recessions after financial crises, bank-based systems are more effective in smoothing the impact of “normal” business cycle fluctuations. 2.