One is regulatory-driven, the other accounting-based, and both aim to provide a view of the resilience of a banks’ balance sheet. Barclays (BARC), which as sector-watchers know has the furthest to go on boosting its tier one capital cover, has the highest overall leverage of assets to capital. So far so good.
Thereafter the picture is more mixed, demonstrating that a bank such as Lloyds (LLOY) may be leading the class on its capital to risk-weighted assets measure, while its balance sheet is increasingly top heavy. Read my accompanying blog for a deeper analysis.
