Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account.
This would also bring the leverage ratio from its initial value of to a new value of .

Explanation: the $100,000 worth of loan would increase the loan account by the same $100,000 and further reduce the cash account by $100,000. For lack of sufficient details, This would bring the leveraged ratio from an initial value of Nil to a new value of 100:1.

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Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account. This would also bring the leverage ratio from its initial value of to a new value of .

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Suppose a new customer adds $100 to his account at Midwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and the account.
This would also bring the leverage ratio from its initial value of to a new value of .