speeches chart 9 : chart 10 : major uk banks ’ and lcfis ’ leverage ratios ( a ) ( b ) major uk banks ’ and lcfis ’ price to book ratios ( a ) maximum - minimum range weighted average us lcfis european lcfis european lcfis us lcfis major uk banks ( b ) ratio major uk banks ( c ) ratio 4. 5 4. 0 3. 5 3. 0 2. 5 2. 0 1. 5 adj. ( d ) 1. 0 0. 5 q1 adj. ( d ) 0. 0 sources : bank of england, published accounts and bank calculations. sources : bloomberg, thomson reuters datastream and bank calculations. ( a ) leverage ratio defined as assets divided by capital. assets are adjusted for cash items, tax assets, goodwill and intangibles. capital includes total shareholders'equity adjusted for minority interest, preference shares, goodwill and intangibles. ( a ) chart shows the ratio of share price to book value per share. simple averages of the ratios in each peer group are used. the chart plots the three - month rolling average. ( b ) assets are also adjusted on a best - efforts basis to achieve comparability between us gaap and ifrs with respect to derivatives and off - balance sheet vehicles. ( b ) excludes northern nationwide and britannia. rock ( from end - 2007 ), ( c ) excludes northern rock. data for co - operative bank are used for co - operative financial services. pro - forma data are used for rbs from 2007 to 2009. ( d ) revisions to us gaap accounting rules on consolidation from 1 january 2010 are applied to end - 2009 data giving a clearer measure of leverage. bis central bankers ’ speeches chart 11 : chart 12 : household financial surplus ( a ) illustrative estimates of debt held by vulnerable uk households ( a ) ( b ) uk usa euro area per cent per cent of unsecured debt per cent of secured debt nmg unsecured ( lhs ) bhps unsecured ( lhs ) + nmg secured ( rhs ) bhps secured ( rhs ) source : thomson reuters datastream, ecb and bank calculations. sources : british household panel survey ( bhps ), nmg consulting survey and bank calculations. ( a ) per cent of gdp. ( a ) vulnerable mortgagors are those with housing equity below 5 %, or housing equity below

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