Global regulators seek perfect capital balance

05/15/2011 | Economist (free content), The

Debate over the security and stability of the financial system focuses on how much capital banks should hold. Regulators are trying to find the perfect balance between having too much and too little capital in the banking system. Lean too heavily one way, and another crisis is likely to follow, experts said. However, the debate goes beyond how much capital to what type of capital, with several options presented.

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Economist (free content), The

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