Momentum is building to improve capital rules. Recently, Federal Reserve Chair Janet Yellen publicly acknowledged that aspects of the banking agencies supplementary leverage ratio may be having unintended adverse consequences.

We share that view and believe these consequences could become much worse in a period of financial stress.

The supplementary leverage ratio, or SLR, is just one of more than a dozen ways that the largest banking organizations are required to monitor their capital positions. Although the SLR is intended to serve as a backstop for risk-based capital standards, the banking agencies demanded higher and higher amounts of non-risk-based capital in the years following the crisis, to the point that the leverage ratio has become the binding capital requirement for many large banks.

Meanwhile, the SLR in the U.S. is twice the international standard. This heightened requirement affects U.S. competitiveness and the ability of U.S. banks to provide financial services to their clients. More troubling is the fact that excessive amounts of capital needed to maintain the leverage ratio can actually increase rather than reduce risks to the financial system, impeding banks flexibility when responding to changes in economic conditions and assisting their customers in adjusting to changing economic winds.

Keep in mind that the leverage ratio is a totally risk-blind measure of capital. Unlike risk-based capital requirements, a leverage ratio can compel a bank to load up on relatively risky assets. As the financial crisis showed, running blind to risk can be dangerous.

In 2013, I wrote on these pages in American Banker that greater emphasis on the leverage ratio could increase risk in the banking sector by discouraging banks from taking deposits.

These concerns may already be a reality.

Banks play a pivotal role in reinforcing stability during periods of financial market uncertainty. In times of economic stress, customers tend to flood the U.S. banking system with deposits as they search for financial safe havens. As cash on deposit surges, banks invest those funds in safe assets, such as Treasury securities and deposits at the Federal Reserve, so that these funds are available if and when the customer needs them. Particularly at large custodian or investment banks, investing customer funds in risk-free assets as opposed to loans or other holdings susceptible to loss ensures that customers can safely withdraw them.

A banks risk-based capital remains steady when it invests customer deposits in these safe assets because they receive a zero percent risk weight. However, investments in Treasury securities and central bank placements reduce a banks leverage ratio because all assets are treated equally under the SLR. This makes it difficult to accept new deposits, which now have an added cost. Worse, sudden changes in customer deposit inflows can make banks leverage ratios volatile. Many banks saw huge deposit inflows at different points during the financial crisis.

Effectively, the leverage ratio is an incentive for banks not to serve as a safe haven for depositors in a crisis. The leverage ratio should not penalize banks for conducting this core banking function. In effect, banks that absorb deposits in times of crisis act as shock absorbers for the broader economy, providing a calming influence. During the last recession, banks accommodated a surge of nearly a trillion dollars in customer deposits.

Fortunately, the Treasury Department and the Fed recognize the issue.

The Treasury Department has provided specific recommendations for improving the design of the supplementary leverage ratio. The clearest, most obvious step is not counting risk-free assets such as banks deposits at central banks, Treasury securities and initial margin for centrally cleared derivatives in the leverage ratio formula.

This change would create a more rational and effective leverage ratio that is concerned with a banks genuine balance sheet risk and is more focused on protecting the financial system as a whole. By their nature, cash or near-cash holdings pose none of the credit risk that capital standards are designed to capture.

The leverage ratios effects on customer deposits can also be viewed beyond the lens of risk.

Banks custodial services form the nuts and bolts of institutional investment activity in good economic times and bad. These services allow pension funds, mutual funds and other long-term investors to manage day-to-day financial transactions, including the movement of cash resulting from their investments. These services often result in banks receiving large levels of deposits when, for example, a mutual fund sells an investment and deposits the proceeds with a bank. Refusing cash deposits or passing increased costs resulting from them to customers could erode the ability of banks to support payment, clearing and settlement activities. If the cost of maintaining pension plan and other retirement savings assets increase, or if the services available to pension funds and mutual funds are reduced, it will be detrimental to U.S. pensioners and therefore the economy as a whole.

Fed Gov. Jerome Powell stated in recent testimony that, [i]n light of the substantial progress in the build-out of our overall regulatory capital and stress testing frameworks over the past few years, the Federal Reserve is taking a fresh look at the enhanced supplementary leverage ratio. Chair Yellen has echoed that view.

The consequences of the supplementary leverage ratio are clear and significant. This fresh look is coming none too soon.

Hugh Carney is vice president of capital policy for the American Bankers Association.

Follow this link:
BankThink Leverage ratio harms banks' role as safe haven in a crisis - American Banker (subscription)

lorazepam 1mg buy online uk fightmagazine.com It is said that safety should not be an issue, and patients should not be studied with pharmacologic stress if it is not safe for them to exercise. Originally it was ... Active Ingredient: Orlistat Xenical is an oral weight loss medication used to help ... and more »

Read the original post:
lorazepam 1mg buy online uk - fightmagazine.com

Photo Credit Andrew Scrivani for The New York Times

A handful of walnuts may be an effective weight loss tool.

Walnuts are rich in omega-3 fatty acids and other substances and, in moderation, have been linked to reduced risk of obesity and diabetes. They may also efficiently reduce appetite.

Researchers now may have found out why. They had nine hospitalized obese patients drink, on five consecutive days, either a smoothie containing 48 grams of walnuts (1.7 ounces, or about 14 walnut halves and 315 calories) or a placebo smoothie identical in taste and calorie content. Then, after a month on their regular diet, the patients returned for a second five-day trial, with placebo drinkers on the first trial receiving a walnut smoothie, and vice versa.

The participants underwent M.R.I. brain exams while looking at pictures of high-fat food (cake, for example), low-fat food (vegetables) or neutral pictures of rocks and trees.

The study, published in Diabetes, Obesity and Metabolism, found that when people looked at pictures of high-fat food, activation in the insula, a part of the brain involved in appetite and impulse control, increased among those who drank the walnut smoothie, but not among placebo drinkers. The study was funded in part by the California Walnut Commission.

Walnuts can alter the way our brains view food and impact our appetites, said the lead author, Olivia M. Farr, of Beth Israel Deaconess Medical Center in Boston. Our results confirm the current recommendations to include walnuts as part of a healthy diet.

Excerpt from:
Walnuts for Weight Loss? - New York Times

courtesy Rebecca C. WaldenFifteen days after my 39th birthday, a number flashed on my bathroom scale, the likes of which I hadnt seen since a third trimester of pregnancy.

It confirmed what a family picture from that morning had told me already: I was the largest Id ever beenobese by body fat standardsand that one go-to outfit I wore to try to hide the excess? I was only fooling myself.

Forget that I couldnt climb stairs without feeling winded. Or that Id become so self-conscious that I was turning down social invitations. Something had to give.

courtesy Rebecca C. WaldenHell hath no fury like a hungry gastronome. For this lifestyle change to have any staying power, food had to come first. While I thought I already made healthy choices (most of the time), an honest inventory of the kitchen left much to be desired. Obvious changes aside (goodbye confectioners sugar, hello Chia seeds), I didnt stop there.

Around my midsection, I was sporting the very problem that happens when one estimates portion size. So I bought an extra set of measuring cups, and every day, I work them harder than I do the percolator. When Im not where I can measure, I use these portion control tricks.

As for what to put in them, there was legit glee when I learned that dairy isnt off limits. Hello comfort food! That helped me to brave new recipes centered on superfoods, and jump started my weight loss. With these fat-releasing foods rounding out my menus, I shed the first 10 pounds in 30 days.

courtesy Rebecca C. WaldenFitness and fun are not mutually exclusive. I just needed to mix it up.

Leaving my long favored elliptical behind, I gave Body Pump a try. As intimidating as it first seemed, I found myself looking forward to the next class. A few weeks in and I wondered why Id waited so long.

I began prioritizing exercise around work and family commitments. Instead of resenting it, I craved itstill do. With instructors that keep my form on point, contagiously upbeat music mixes, and familiar folks to high five after a grueling set, these 60-minute segments routinely shatter my inner I cant.

By early March, I could see baby biceps in the bathroom mirror. Once the initial weight loss went from 10 to 20 pounds, I could shop my closet, and I wanted more. So I kept showing up. I was the new kid in kickboxing, then Zumba, and eventually spinall exercise classes known to torch calories. More often than not, I was the slowest, least coordinated person in the room. But at 25 pounds down and counting, I didnt care.

Vacation was no excuse to slouch. Instead of treating spring break as license to eat and drink my way through the entire week, I consumed as I would at home, save one splurge evening. And for that, I worked, sneaking in mountain climbers and other zero-equipment exercises that can transform your body.

Content continues below ad

courtesy Rebecca C. WaldenFor the fourth time in as many years, I downloaded My Fitness Pal and learned how to use it correctly. Food and exercise journaling has demystified so much about how to lose weight. It remains a favorite tool now that Im learning how to maintain weight loss.

From the beginning, I also kept my weekly weight loss goal to a realistic 1 pound per week.

With every food or beverage entry, I estimated calories liberally. For exercise, I did the reverse. An unnecessary step to some, but my journey was different. This wasnt just an effort to lose weight. For long-term success, I needed to make the mental leap away from dieting as a means to an end and instead, embrace this as a lifestyle change for good.

Throughout the process and still now, these margins of error keep me on track.

By mid-April, Id lost 30-plus pounds, and logged enough entries to create trend data. The stats blew away every dietary bias Id ever believed. When I upped my protein game, stopped fearing carbs, and started embracing healthy fats, good things happened, and fast.

Im now 219 days in, four months shy of my 40th birthday, and in the best physical shape of my adult life.

courtesy Rebecca C. WaldenYou know that saying mind over matter? It can make the difference between loathing and loving your workout. There are times when Im tired or distracted, and not particularly in the mood to slog through any given sweat sessiondays when the 10-pound weight might as well weigh 100. Blame it on the endorphins, but in those moments I come up with a goala feat just this side of ridiculous to work towardsand it helps me finish the set with all I have left.

When I first saw real progress (and stepped into smaller clothing), I was reluctant to trust it. Nothing more than vanity sizing run amok. How much could my body possibly have changed? Only one way to know for sure, and it was buried deep in the Once Upon a Time part of my closet. A textile truth serum in an unforgiving cut. Yes, Im talking about my wedding dress.

Did I dare?

Right through every last kettle bell swing and lunge squat, every power press and dead lift, and every morning when I felt like chucking the alarm into the wall instead of getting up and after it. Right up to the day last week when I was able to twirl around in a certain gown and celebrate the goal achieved. Wedding dress challenge done and won.

Irreverent focus on fitness aside, Ive finally come to understand two things. There is no finish line. And a little levity keeps things interesting. With that in mind, Im now drawing inspiration from the black pants made iconic by Olivia Newton John. Halloween is less than three months out, and tight pants arent just for Jimmy Fallon.

Read more:
I Dropped 5 Sizes in 7 MonthsHere's How I Did It - Reader's Digest

For many, the prospect of losing weight without changing your diet sounds too good to be true.

But scientists have found a method that could provide the solution: simply weigh yourself daily.

In a study of 294 female students by researchers at Drexel University and the University of Pennsylvania, it was found that those who hopped on their scales every day over two years saw a drop in both BMI and body fat compared to those who didnt.

Whats more, the women - who were all of different weights - hadnt been told to try to lose weight.

The researchers were particularly interested in studying students as its so common to put on weight at university, especially in your first year - they dont call it the Freshers 15 for nothing, after all.

In fact, a 2009 study found that over 70 per cent of students gain weight in their first year at university.

But simply by weighing themselves daily, the women not only avoided putting on weight, but actually losta significant amount. Those who didnt weigh themselves saw little change in their BMI.

The losses in BMI and body fat percentage were modest, but still significant, especially keeping in mind that these women were not part of a weight loss programme, said lead study author Diane Rosenbaum, PhD.

We did not expect that, in the absence of a weight loss intervention, folks would be losing weight.

Lifting weights can make you more intelligent

The researchers cannot say for certain that daily weighing leads to weight loss, but it could be thatchecking in every day motivates you to look after your body more.

Regularly weighing yourself can motivate you to engage in healthy eating and exercise behaviours, because it provides you with evidence that these behaviours are effective in helping you lose weight or prevent weight gain, said Meghan Butryn, PhD, an associate professor in the College of Arts and Sciences at Drexel.

Similarly, if you see weight gain on the scale, that information can motivate you to make a change.

Of course, its normal for a persons weight to fluctuate, and so if you weigha bit more than the day before, it could just be due to water retention, when you last went to the toilet, what you ate the night before or where a woman is in her menstrual cycle.

But perhaps simply by making youmore aware, daily weigh-ins could help you lose weight.

Originally posted here:
Weighing yourself daily linked to weight loss, says study - The Independent

Whether you have some extra weight in your upper arms or rear end, it makes sense that targeting those areas with exercisecurls for your arms, lunges for your buttwould slim them down.

Weight-loss experts refer to this as spot reduction. But it turns out that in most cases, this kind of laser-focused weight loss isnt possible. One study in the Journal of Strength and Conditioning Research found that six weeks of intensive ab workouts did nothing to slim the exercisers midsections. A related study found that 12-weeks of one-armed workouts resulted in less loose skin in the trained arm, but zero fat loss.

Working out just one part of your body probably wont slim it down, but some body parts are more likely to shed fat when you exercise. Your stomach is one of them.

MORE: The TIME Guide To Exercise

Some fat deposits are more metabolically active than others, and those may be more responsive to exercise interventions, says Arthur Weltman, a professor of medicine and chair of the department of kinesiology at the University of Virginia. Abdominal fat in particular is one of the most metabolically active fats.

When you exercise, your workouts trigger the release of hormones, Weltman explains. The higher the exercise intensity, the more of these hormones your body pumps out, and the more of that metabolically active fat you lose. (Some of Weltmans research suggests that high intensity interval training (HIIT), in particular, may slim your midsection.)

If you have fat stored in your gut, arms and chest, a lot of your fat is metabolically active, so it will likely respond to exercise and diet changes, he says. Thats especially true of your abdominal fat. The bad news is that extra fat in these regions is also linked with a greater risk for diabetes, heart disease, cancer and other ailments.

MORE: How Apple Cider Vinegar May Help With Weight Loss

On the other hand, if you store excess fat in the hips, butt and thighs, that fat is not metabolically active. You have a lower risk for many diseases, "but that fat is very hard to reduce, he says.

What type of exercise is best for targeting the tummy? One study compared strength training to aerobic training in terms of fat reduction in different parts of the body and found that while aerobic trainingrunning, swimming, cyclingled to greater whole-body fat loss, resistance training targeted abdominal fat in particular.

In a nutshell, spot-targeting fat isn't very effectivein most cases. But if youre trying to lose fat around your stomach, a mix of resistance training and high-intensity aerobic exercise, along with a healthy diet, may help reduce your belly fat.

See the rest here:
You Asked: Can You Lose Weight Just from Your Stomach? - TIME