Before the 1980s, quantitative limits on bank leverage were rare. Banks in most countries had a reserve requirement, a fraction of deposits that was required to be held in liquid form, … See more

The term leverage is used differently in investments and corporate finance, and has multiple definitions in each field.
Accounting leverage See more

While leverage magnifies profits when the returns from the asset more than offset the costs of borrowing, leverage may also magnify losses. A corporation that borrows too much money … See more

• Coupon leverage
• Homemade leverage
• Leveraged buyout See more

1. Bartram, Söhnke M.; Brown, Gregory W.; Waller, William (August 2015). "How Important is Financial Risk?". Journal of Financial and Quantitative Analysis. 50 (4): 801–824. See more