Furthermore, opacity remains a concern for statistics on aggregate liquidity or leverage of investment funds. An aspect of particular concern refers to the measurement of synthetic leverage build-up mostly with over-the-counter-derivatives, data which are not collected systematically or in a harmonised fashion. Second, we need to develop tools targeting liquidity in non-bank financial institutions and ensure that leverage remains within acceptable limits.
Even with the flexibility noted earlier, a firm might have to sacrifice certain economies of scope or scale to meet a cap. If analysis finds scale and scope economies unlikely to be realized beyond a certain level of activity, then policymakers would have a point of reference for setting the cap.