This is a movement that requires appropriate empirical evidence in policy making. "The cost-benefit revolution" (Sunstein [2018]) is under way, in which a balancing of costs and benefits based on empirical evidence is made use of in policy making.
And this is why supervisors are now taking leverage ratios into account when assessing institutional risk, in addition to the standard risk-weighted ratios. This allows for a multiangled view of institutions’ risk profiles. Other rules, such as limits on LTV ratios, may set clear limits on loan portfolios’ risk profiles.