Banks capital adequacy ratios were set globally, and, once set, remained fixed.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined.

None of the major banks met even the Basel 1 standards for capital adequacy.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically.

Moreover, the use of mechanistic rules to determine capital adequacy has also inadvertently encouraged systemic imprudence.

That said, the ratio of capital formation does require careful monitoring.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

The recent agreement by the Basel Committee on Banking Supervision on a new capital adequacy framework is another positive step.

Capital adequacy and liquidity risks should be assessed on a group level, rather than country by country how capital and risks are divided between countries is less important.

The Basel III agreement on capital adequacy and other recent reforms still have not ring fenced trade financing from these potential shocks.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined. Indeed, investment banks like Goldman Sachs and Barclays Capital are already inventing new types of securities to reduce the capital cost of holding risky assets.

First, sovereign bonds held by banks are treated as risk free assets under EU rules for calculating banks solvency and capital adequacy levels.

And a lower growth rate implies that less investment is needed to maintain the capital output ratio.

Capital adequacy was a matter of judgment examiners would figure out how large a buffer a bank ought to have, taking into account its specific risks.

Many eurozone banks have made far less progress in strengthening their capital adequacy and liquidity than have American and British banks since the financial crisis erupted.

This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

Where this is not possible, it means stringently restricting what they can do and imposing higher taxes and capital adequacy requirements, thereby helping level the playing field.

Reckless balance sheet expansion in pursuit of profit is kept in check if financial companies adhere to statutory capital requirements, which mandate a capital asset ratio of about 8 .

Haldane rightly complained that banking regulation has evolved from a small number of very specific guidelines to mind numbingly complicated statistical algorithms for measuring risk and capital adequacy.

Because of the capital utilization effect, the capital labor ratio would not, in fact, decline, and hence there would be no significant effect on the marginal productivity of hours worked.

Although high growth requires large scale capital formation, the relation between investment in real capital assets and human capital in China seems to be out of proportion. This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

Some fear that extending the workday will not produce more jobs because the resulting expansion of hours worked will reduce the capital labor ratio.

Keeping those loans on the books would have meant that a bank would have had to incur a large capital adequacy provision and monitor the loans performance, at a cost to itself.

In addition to the tough new regime of personal accountability, the commission would supplement the Basel standards on bank capital with a tight leverage ratio.

Current ultra low interest rates may be scaring people about the adequacy of future income.

Current ultra low interest rates may be scaring people about the adequacy of future income.

The weight ratio of iron to silicon is 1.05 1.27 in Ganymede, whereas the solar ratio is around 1.8.

First, capital requirements should be set as a straightforward ratio of common equity to total assets, thereby abandoning all reference to banks own risk management models.

One partial result of this is that production in Europe has in many places become more labor intensive, with the capital to labor ratio tightening markedly.

In Africa, the ratio is 900 per 100,000.

In Switzerland, the leverage ratio is now central.

What's the student teacher ratio at your school?

The Golden Ratio is found everywhere in nature.

The mass ratio in this case is 81.30059.

They calculated that 75 to 80 of economic growth did not come from increasing the capital output ratio at least not if the private marginal product of capital was taken as an indicator of the social marginal product.

Today, capital in the developed world is abundant the saving ratio declines as people consume more and production shifts increasingly to services, where productivity gains are limited.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital.

While normal banks need an equity asset ratio of at least 7 , investment banks typically operated on a ratio of only 4 .

Ideally, drugs should have a favorable risk benefit ratio.

In the US, that ratio has remained relatively constant.

Ideally, drugs should have a favorable risk benefit ratio.

So a country where labor productivity is low will become an attractive location for foreign direct investment, and the resulting increase in the capital labor ratio will raise productivity.

Okay, I'm getting to the punch. Golden Ratio, it's crazy.

But the ratio is not the cause of the feedback.

Faced with the difficulty of meeting their 9 capital ratio requirement, they will achieve the target by selling assets and contracting credit not exactly an ideal scenario for economic recovery.