How do I calculate the leverage ratio with no equity. Calculate the leverage rat

Question

How do I calculate the leverage ratio with no equity.

Calculate the leverage ratio from the following table as one of the main reasons contributing to the Great Recession 2008-09.

Balance Sheet of U.S. Commercial Banks, January 2007

Assets

Reserves and Cash Items                                                               302.4

Securities                                                                                 2212.9

Loans                                                                                       6393.5

Other Assets                                                                             842.5

Total Assets                                                                            9751.3

Liabilities

Checkable Deposits                                                                  645.7

Nontransaction Deposits                                                           5696.9

Borrowings                                                                              1958.1

Other Liabilities                                                                       590.2

Bank Capital                                                                              860.4

Total Liabilities                                                                       9751.3

Work out your answer here in below

Explanation / Answer

= total external liabilities/equity

=8890.9/860.4

=10.33:1

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