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A comment on The Fed stalls the creation of a bank with a novel business model. Parent comment

Re:The Fed stalls the creation of a bank with a novel busine... by stephen_g on Saturday September 22, 2018 @03:41AM (#18044971)
It absolutely does say that. The whole of part 1, "Minimum capital requirements and buffers" is 100% based on capital, and deposits don't factor in to any of the definitions of Tier 1 capital. The leverage ratios also factor entirely from capital that doesn't include deposits.
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Re:The Fed stalls the creation of a bank with a novel busine... by cm2187 on Saturday September 22, 2018 @04:18AM (#18045071)
100% is the conversion of a loan balance to leverage exposure. The capital requirements vary between banks and regulator, but they are typicaly 3-5% of the leverage exposure. A leverage ratio requirement of 100% would make lending uneconomical. To achieve a return on equity of 10%+, you would have to charge over 10% on your loans.
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