US banks are to be given an extra incentive to calculate their supplementary leverage ratio for stress testing , and now will have to show regulators what this ratio will stand at in the context of a stressed scenario beginning in 2020 ; the mandate only applies to banks with assets of more than $ 50bn . Analysts are reported to have said that the mandate is creating distortions in a number of areas in the bond market , including interest - rate bonds and repo funding markets , by essentially making it more expensive for banks to fund positions in those markets .
US banks are to be given an extra year to calculate their supplementary leverage ratios for stress testing, and now will have to show regulators what this ratio would stand at in the event of a stressed scenario beginning in 2017; the extension only applies to banks with assets of more than $50bn. Analysts are reported to have said that the mandate is creating distortions in a number of areas in the bond market, including interest-rate swaps and repo funding markets, by essentially making it more expensive for banks to fund positions in those markets.