>nothing to do with the amount of deposits "Assets = Liabilities + Equity" <-- should "L" be in here or not? The ratio of assets to capital is limited to pr

>nothing to do with the amount of deposits "Assets = Liabilities + Equity" <-- should "L" be in here or not? The ratio of assets to capital is limited to prevent levering up to infinity, ok. But if the liabilities are mostly deposits, then it's the deposits that allow it to be a levered business at all.