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Ratios in sentence

398 examples of Ratios in a sentence

The new Basel III banking guidelines, together with new national regulations, aim at creating a more robust financial system by insisting on higher capital-adequacy ratios, less leverage, greater separation between investment and retail banking, a better macro-prudential framework, and measures to prevent financial institutions from becoming “too big to fail.”
But most banks mollified regulators by simply shedding riskier assets to improve their capital ratios.
The stunning opacity of solvency ratios encouraged regulators to turn a blind eye to banks’ excessive risk-taking.
Indeed, more often than not, the banks that failed or had to be rescued in the wake of the 2008 financial crisis had solvency ratios higher than those of banks that remained standing without assistance.
Compounding the problem, the diversity in banks’ capital ratios also indicates a dramatic distortion of the international playing field, as increasingly competitive conditions in financial markets have led to national discretion in applying the rules.
Second, new capital ratios with multiple and decreasing capital thresholds, which trigger increasingly intrusive corrective action, should serve as the basis for a new system of mandated supervisory action.
This leaves only the financial regulator or the central bank, which can use macroprudential tools – such as loan-to-value and debt-to-income ratios on new mortgage lending – to limit the deterioration of banks’ balance sheets during boom times.
The first is regional: Latin American countries experienced a sharp reduction in their debt ratios from 2003 to 2008.
As it stands, the region’s debt ratios are rising, but only moderately; on average, they remain well below the levels that prevailed at the beginning of this century.
The debt ratios for both Ireland and Portugal are expected to peak at about 120% of GDP in 2013, after which they are projected to fall.
Some countries face the growing risk of near-perpetual belt-tightening, which would further dampen growth and thus keep debt ratios high.
And, without that, all it has is a recession strategy that makes austerity and reform self-defeating, because, if output continues to contract, deficit and debt ratios will continue to rise to unsustainable levels.
As a result, the debt ratios commonly applied to Greece could be overstated.
First, falling labor income implies falling consumption for households, which have already been hard hit by a massive loss of wealth (as the value of equities and homes has fallen) and a sharp rise in their debt ratios.
In this context, increasing investment would not only reduce capital efficiency further; it would also heighten the risk implied by companies’ high leverage ratios.
But, because many countries have relatively low tax-to-GDP ratios, mobilizing domestic resources for development spending can be difficult and may require international cooperation to design and implement fiscal reforms to maintain macroeconomic stability while improving socioeconomic health.
The IMF calculates that a one-time 10% wealth levy, if introduced quickly and unexpectedly, could return many European countries to pre-crisis public debt/GDP ratios.
After all, aren’t key indicators like debt ratios or budget-deficit trends worse in the United States and Britain?
As this weakens growth and reduces inflation, the speed at which their sovereign-debt ratios can be reduced declines considerably.
Given near-zero interest rates, the corresponding drag on income is currently low; but, because inflation is virtually inexistent and growth is anemic, the debt ratios have only stabilized.
The importance of foreign debt is well illustrated by the case of Portugal: although the country’s public-debt and deficit ratios are broadly similar to those of France, the risk premium on its public debt increased continuously, until it was forced to turn to the European rescue fund.
Both countries have much higher debt-to-GDP ratios than Portugal, but both are paying a much smaller risk premium.
Many other countries, such as Korea and Singapore, have regulations – loan-to-value ratios, for example – limiting how much households can borrow.
Hydrogen or biofuels will probably be needed to power those applications – particularly aviation – that require high energy-to-weight ratios.
Investment-to-income ratios were higher as well for open economies, by an average of 5.4% compared to closed economies, thereby boosting growth indirectly.
He led the charge in arguing for much higher capital ratios, in the United States and elsewhere.
GDP growth has slowed sharply; corporate-debt ratios are unprecedentedly high; the currency is sliding; equity markets are exceptionally volatile; and capital is flowing out of the country at an alarming pace.
With bond yields at 2% (versus 0.1% in Japan today), those debt ratios would remain stable even if the government ran a primary deficit of 4% of GDP, and a total deficit of 5%, year after year.
With fear of bank runs and defaults receding, banks’ reserve ratios became ever smaller, thus increasing their lending facilities.
A back-of-the-envelope calculation shows that with the risk premium removed, stocks prices could easily triple from existing levels, with price/dividend ratios soaring to over 200, compared to historical averages of 40 to 50.
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