Basel III should aim higher on capital targets, says Bank of England
Discussion paper published by Bank of England and co-authored by external rate-setter David Miles suggests Basel III common equity requirements are too low
The common equity target ratio set under the Basel III Accord could do with being more "ambitious", says a paper published on Thursday and co-authored by David Miles, an external member of the Bank of England's Monetary Policy Committee.
The minimum requirement under the Accord, of 7% of risk-weighted assets to be held in the form of common equity, was a step in the right direction, according to Miles, Jing Yang and Gilberto Marcheggiano.
"[It] corresponds to a minimum level of loss-absorbing
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