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Given its enormous balance sheet , GE has been in a position to increase rivals ‘ funding cost by delaying the inception of cash flows and consequently increasing the need to resort to external financial means further raising their leverage ( debt / equity ratio ) and resulting borrowing costs [ 32 ] . " We think it 's time for countries to use their leverage individually , and we think it 's time for countries to band together collectively to make the same effort , " said Undersecretary of State Nicholas Burns . Use all of their leverage , with both companies and countries , to strategically promote transparency , fair and accountable revenue management and allocation , and respect for human rights . Banks should also deduct the amount of disallowed deferred tax assets from both total assets and from risk-weighted assets in determining their leverage capital and risk-based capital ratios . But as domestic and foreign water utilities expand their water and water-related investments , their leverage will grow , pressuring their credit quality and debt ratings . The OCC , together with the Banking Agencies , adopted revisions to their leverage capital requirements to clarify that highly-rated institutions with a CAMELS \ 21 \ rating of 1 need only maintain a 3 percent minimum leverage ratio and that all other institutions must maintain a 4 percent minimum leverage ratio . We find that during the transition process firms generally increased their leverage , lowering the gap between actual and target leverage . The idea is this : suppose that , as argued by Bernanke and Gertler ( 1989 ) , investment is often wealth-constrained - that is , because firms face limits on their leverage , the level of investment is strongly affected by the net worth of their owners . In October 1997 , the agencies issued a proposal to simplify and make uniform their leverage capital standards . They may use their leverage , and the lack of their oil , and risk a Mexican standoff ( with lots of cheaters still getting that oil , as always ) .