For US banks, is CCAR or the Leverage Ratio the binding constraint on securities finance

The Federal Reserve’s Comprehensive Capital Adequacy Review (CCAR) stress test are more of a binding constraint on bank’s use of capital than the Leverage Ratio for some activities, for example small business loans and residential mortgages. This article explores the methodology behind CCAR compared to a bank’s own models and looks at the possible impact on securities financing transactions.
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