Hi, amateur question to regular posters. In lending business, what would be the definition of leverage. Will it be loan assets/ equity or borrowed funds/equity. I think it would be loan assets/equity because all borrowed funds are eventually meant to be loaned out. In Screener leverage and d/e ratio is the same figure. So what is your opinion regarding leverage? I read a quote somewhere which aptly sums my query- In a lending business, the assets are the liabilities and the liabilities are assets of the lender.
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