2008 Financial Crisis - Statistics Project Example

According to the data the 2008 Financial Crisis brought with it quite a few obvious changes to the whole financial system. Most notably to bank holding companies, whose performance ratios, income measures, capital positions and leverage showed great instability and constant fluctuation.

The financial leverage is no exception. The graph indicates a rather unsteady rise and fall within the 15 year course having peaked at around 18 in the year 2008. It showed signs of stabilization only after 2010 when it began a steady decline that went all the way through 2015. The amount of leverage that was used in the housing market and in securities backed by mortgage was considered to be a major driving force behind the financial crisis. So far there have been no other spikes in the financial leverage.

The level of loans to deposits ratio shows great inconsistency throughout the 15 year period. It starts with an initial sharp decline until around 2002 before it rises slightly and falls again for about another year. After this point it begins to continuously rise and reaches a high point of about 3.4 in the year 2008. The loans to deposits ratio affected bank lending during the financial crisis and caused new loans to major borrowers in the USA to fall by 47%.

The level of loans to asset ratio follows a different trend. The general direction is a decline with a constant rise and fall in the graph until around 2010. After this point it starts to rise again but with some spikes here and there.