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South Asia

India's Testosterone-free Alternative

Writing in the blog last year, Sarah Iqbal pondered whether the financial crisis was the result of too much testosterone on Wall Street, wondering if things would have been different if women were in charge:

Peer pressure leads to male herding behavior in financially pressurized situations resulting in high risk bets. Women’s propensity for risk-taking, however, seems immune to this type of pressure.

The Leverage Ratio: A New Binding Limit on Banks

Editor's Note: Katia D'Hulster is a senior financial sector specialist in the Financial Systems Department of the World Bank. She is the author of a recently-released policy note on the benefits of a non-risk-based capital measure, the leverage ratio, as an additional prudential tool to complement minimum capital adequacy requirements.

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