If deleveraging were to be obvious, then why do banks resist?
This is not a post that intends to empathize with banks. However, it responds to recent comments after the publication of the Basel III leverage ratio rules. Most of us agree that banks should be less levered, but this is not happening at a fast pace. This begs the question: if deleveraging were to be obvious, then why do banks resist?
Bank capital is ex…

