01790cas a2200241 a 4500 AALejournalIMF001421 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874396 1018-5941 BD-DhAAL BD-DhAAL Breuer, Peter. Measuring off-Balance-Sheet Leverage / Peter Breuer. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The simultaneous unwinding of leveraged positions can trigger financial market turbulence. Although balance-sheet measures of leverage are available, it is useful to construct a measure of leverage that incorporates both on- and off-balance-sheet activities. This paper provides measures of leverage implicit in derivative contracts by decomposing the contracts into cash market equivalent components. A leverage ratio can then be calculated for this replicating portfolio, which consists of own funds (equity) and borrowed funds equivalents (debt). Methods for aggregating leverage by institution and by markets are presented. The interaction between leverage and risk is discussed, and a modified capital adequacy ratio is calculated, which captures off-balance-sheet exposure. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/202 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/202/001.2000.issue-202-en.xml IMF e-Library