US and UK banks gain $1.3T in lending capacity from leverage ratio deregulation
US and UK banks have gained $1.3 trillion in lending capacity due to changes in the Enhanced Supplementary Leverage Ratio. This deregulation allows banks to treat certain low-risk assets as less risky, freeing up capital for lending and investment. The overall economic impact could reach approximately $4 trillion when considering the credit multiplier effects.
- ▪The Enhanced Supplementary Leverage Ratio was revised to reduce capital requirements for banks.
- ▪Major banks like JPMorgan Chase and Goldman Sachs can now deploy more funds into the economy.
- ▪The changes could particularly benefit sectors reliant on credit, such as defense and infrastructure.
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US and UK banks gain $1.3T in lending capacity from leverage ratio deregulation Changes to the Enhanced Supplementary Leverage Ratio could unlock massive liquidity across global financial markets, with ripple effects reaching crypto. Share Add us on Google by Editorial Team May. 26, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); The post-2008 financial crisis playbook just got a major revision.
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