The results demonstrate that the leverage ratio does appear to weaken incentives of clearing members to provide client clearing services. The research illustrates the benefits of evaluation exercises in providing evidence on whether or not the post-crisis reforms are achieving their desired  15  All speeches are available online at www.bankofengland.co.uk/speeches  15  aims, including whether the ways reforms interact are generating problems. How could analysis like this inform a decision whether to make a dynamic adjustment to offset the effect of initial margin held on behalf of clients on the leverage ratio denominator? What are financial stability benefits and costs that would need to be taken into account in making a decision? One benefit would be reversing the impact on client clearing discussed above. Another benefit would be that the adjustment could make the provision of client clearing more resilient should a large client clearing service provider withdraw or fail. If providing client clearing is less constrained by the leverage ratio, providers will have greater capacity to take on trades of clients of a withdrawn or failed clearing member; a process called ‘porting’. If porting was not possible, client trades would have to be closed out, potentially at a loss. The benefit of this greater resilience is trade continuity for clients and the avoidance of these potential losses.
Chile)  3.2 2.2 1.5 10,0 5.6 2.7  2.6 2.1 1.7 10.5 5.1 3.6  -2.6 -4,0 -5.2 9.1 0.1 -2.2  2.7 1.6 3.5 10.1 7.1 6.0  2.3 0.8 0.8 8.5 4.2 3.7  3.3 1.4 1.9 8.8 5.1 4.3  20  44  62  79  89  89  101  156  234  340  330  320  WTI oil price $ LME copper price $ (e) Estimate. (f) Forecast. Sources: Central Bank of Chile based on investment banks, Consensus Forecasts and International Monetary Fund. Figure 5 Contribution to annual GDP growth (variación real anual, puntos porcentuales) Economic activity  Aggregate demand  8  8  25  25  6  6  20  20  4  4  15  15  2  2  10  10  0  0  5  5  -2  -2  0  0  -4  -4  -5  -5  -6  -6 -10  -10  07  08  09  10  Financial and entrepreneurial services (1) EGA Mining & fishing Manufacturing Construction Communication & transport Retail Residual (2) GDP  -15  07  08  09  10  -15  GFCF Change in inventories Government consumption Private consumption Exports GDP  (1) Includes financial services, insurances, housing leases and services provided to firms. (2) Includes agriculturalforestry, housing property, public administration and personal services (i.e., education, health-care and other services).