22/06/2010 (Agence Europe) - The European Banking Federation (EBF) opposes the idea of introducing leverage ratios into EU legislation to restrict banks' leverage capacity because they argue that not connected with risk, such a restriction would penalise retail banks whose loans are properly collateralised financial products. It argues that this would be paradoxical because most retail banks came through the crisis unscathed. The EBF estimates that the cost of capital and liquidity rules for the measures currently under examination would be some €550 billion. The measures would therefore result in smaller banks being forced out of business, explains the EBF. (M.B./transl.fl)