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Equity to Assets Of Sweden's Banking Since 1870

Banking | Sweden | August 9, 2014
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From nearly 30% in 1870, bank equity dropped to less than 5% of bank assets in Sweden, according to a study made by Per Hortlund (Do Inflation and High Taxes Increase Bank Leverage?) The situation is similar in most developed countries in the world now. Following the financial crisis, hefty losses in the banking sectors across the world and tightening regulation calling for capital strenghtening, it will be interesting to watch where the capital level will go. One thing is sure, though, it will go up...