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.