I am very supportive of the notion of legislating now for the leverage provision, but in his new clause, the hon. Gentleman discusses
“a target for the overall leverage of the…system, to encompass…the activities of foreign financial institutions and non-bank originators of credit”
—or shadow banking. Although that might be taken into consideration in the calculation, the FPC would have no power to implement a leverage ratio in the shadow banking sector, so is there not an unintended consequence that leverage ratios may be too high in the formal banking sector to compensate for what the report found?