It has been claimed to be a simple fallback measure for dealing with an increasingly complex banking system, a kind of panacea for complexity. Sometimes one could even get the impression that some supporters of the leverage ratio actually think they have found the fount of all knowledge. I don’t.
Some of the change is favourable, some is confronting. On the favourable side, we have low and stable inflation, low unemployment, and broad financial stability. This advantageous position must never be taken for granted. I thank all of the wise people – past and present – who have worked hard on creating the current environment.