Banks' capital should be much higher, Vickers says

When he was chairman of the U.K. Independent Commission on Banking, John Vickers recommended that banks' core Tier 1 capital ratio be 10%. Now, Vickers says the ratio should be 20%, as he encourages policymakers to push banks to bolster capital. Vickers also has criticized Basel III's 3% leverage ratio. "It is not very sensible to run a market economy on the basis of a banking system that is 33 times leveraged, let alone 40 or 50 times leveraged," he said.

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