MPC member calls for bigger bank buffers
Banks should have capital buffers far in excess of current levels, and more than double the minimum required under Basel III, and they could do so without dramatically raising their costs, David Miles, an external member of the Bank's rate-setting Monetary Policy Committee said yesterday. Professor Miles believes that banks should hold 18 to 20 per cent of risk-weighted assets in the form of equity.
Under Basel III rules, set to come in between 2013 and 2019, banks will be required to have capital of 7 per cent of risk-weighted assets.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies