Bank of Spain's leverage ratio 2010-2019
The leverage ratio is a useful metric to analyze the solvency of a bank, as it compares its ability to pay debts to the sum of liabilities. A higher ratio means that the bank is more able to repay its obligations, but if the ratio is too high it represents capital that is not returning interest and should be loaned out. In 2019, the Bank of Spain reported a leverage ratio of 8.6 percent.
