The following is a simplified balance sheet of a large commercial bank. Based on this information, what is the bank's leverage ratio? Billions of GBP Assets Liabilities 62 Cash and reserves Financial assets 35 Loans to other banks 24 Loans to households and firms Fixed assets 13.3 12.3 11.3 4 Deposits 32 Secured borrowing 44 Unsecured borrowing 48 6

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The following is a simplified balance sheet of a large commercial bank. Based on this
information, what is the bank's leverage ratio?
Billions of GBP
Assets
Liabilities
62
Cash and reserves
Financial assets
Loans to other banks
Loans to households and firms
Fixed assets
13.3
12.3
11.3
4 Deposits
32 Secured borrowing
44 Unsecured borrowing
48
6
35
24
Transcribed Image Text:The following is a simplified balance sheet of a large commercial bank. Based on this information, what is the bank's leverage ratio? Billions of GBP Assets Liabilities 62 Cash and reserves Financial assets Loans to other banks Loans to households and firms Fixed assets 13.3 12.3 11.3 4 Deposits 32 Secured borrowing 44 Unsecured borrowing 48 6 35 24
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