Table 4.

Impact on real GDP resulting from a 1 percentage point increase in the Basel III leverage ratio assuming 100% pass through

Increase in LR	Linear regression (1)		No M-M effect (2)
	Impact on WACC (RP = 5%)	Impact on WACC (RP = 10%)	Impact on WACC (RP = 5%)	Impact on WACC (RP = 10%)
Basel III Tier 1 Look-through	0.030%	0.032%	0.055%	0.060%
Basel III CET1 Look-through	0.038%	0.042%	0.071%	0.077%

Note: (1) The calculation is based on the estimated M-M offset resulting from the linear regression 2001Q2 to 2015Q2 (see Table 1). (2) Calculated under the assumption that the required return remains invariant to leverage