If a bank's return on equity remains constant, but the ratio of bank assets to bank capital increases:

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The ratio of bank assets to bank capital is also known as the leverage ratio. If this ratio increases, it means the bank is taking on more debt relative to its equity. If the return on equity remains constant, but the leverage ratio increases, then the return on assets must have decreased, since the same return is being spread over more assets.

If a Bank's Return on Equity Remains Constant, but the Ratio