Sunday 12 July 2009

Rein in the banks...Link Capital requirement norms to size of their books...

Well, the subject pretty much says everything I want to say in this article. Short point, as we seek the global recovery, need to have higher capital requirment norms for the banks. My humble suggestion would be to link the %age required to the size of the bank..i.e 4% if the size of your books is $1 Billion - 8% if its between $1 billion to $2 billion, 12% beyond $2 Billion etc... What say?

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