Mortgage

Looming rule forces lenders to disclose reliance on debt

Lenders will soon be obligated to start disclosing their reliance on debt by the start of 2015, American Banker reported. 

As a result, bank investors will be able to assess which lenders are over-reliant on debt, under plans from global regulators to curb financial firms’ addiction to borrowing in order to fuel their activities.

“Investors and other stakeholders will have a comparable measure of bank leverage, regardless of domestic accounting standards,” Stefan Ingves, the Basel group’s chairman, said.

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