▁for ▁the ▁transmission ▁of ▁the ▁effects ▁resulting ▁from ▁a ▁non bank ▁financial ▁company ' s ▁material ▁financial ▁dist ress ▁or ▁activities . Sub st itut ability Sub st itut ability ▁capt ures ▁the ▁extent ▁to ▁which ▁other ▁fir ms ▁could ▁provide ▁similar ▁financial ▁services ▁in ▁a ▁tim ely ▁manner ▁at ▁a ▁similar ▁price ▁and ▁quantity ▁if ▁a ▁non bank ▁financial ▁company ▁withdraw s ▁from ▁a ▁particular ▁market . ▁Sub st itut ability ▁also ▁capt ures ▁situations ▁in ▁which ▁a ▁non bank ▁financial ▁company ▁is ▁the ▁primary ▁or ▁dominant ▁provider ▁of ▁services ▁in ▁a ▁market ▁that ▁the ▁Council ▁determ ines ▁to ▁be ▁essential ▁to ▁U . S . ▁financial ▁stability . Size Size ▁capt ures ▁the ▁amount ▁of ▁financial ▁services ▁or ▁financial ▁inter medi ation ▁that ▁a ▁non bank ▁financial ▁company ▁provides . ▁Size ▁also ▁may ▁affect ▁the ▁extent ▁to ▁which ▁the ▁effects ▁of ▁a ▁non bank ▁financial ▁company ' s ▁financial ▁dist ress ▁are ▁transm itted ▁to ▁other ▁fir ms ▁and ▁to ▁the ▁financial ▁system . L ever age L ever age ▁capt ures ▁a ▁company ' s ▁expos ure ▁or ▁risk ▁in ▁relation ▁to ▁its ▁equ ity ▁capital . ▁Le verage ▁ampl ifies ▁a ▁company ' s ▁risk ▁of ▁financial ▁dist ress ▁in ▁two ▁ways . ▁First , ▁by ▁increasing ▁a ▁company ' s ▁expos ure ▁relative ▁to ▁capital , ▁le verage ▁ra ises ▁the ▁lik elihood ▁that ▁a ▁company ▁will ▁suffer ▁losses ▁exceed ing ▁its ▁capital . ▁Second , ▁by ▁increasing ▁the ▁size ▁of ▁a ▁company ' s ▁li abilities ,