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Mpc’S David Miles Calls For Banks To Hold 20Pc Capital Buffers

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http://www.telegraph.co.uk/finance/financialcrisis/8797454/MPCs-David-Miles-calls-for-banks-to-hold-20pc-capital-buffers.html

David Miles, a member of the Bank of England’s Monetary Policy Committee, told a conference in Luxembourg that he believed banks should hold 18pc to 20pc of risk-weighted assets in the form of equity.

“To many people these levels look ridiculously high, but if risk-weighted assets are, let’s say, half of total assets then in terms of overall level of funding, 20pc relative to risk-weighted assets would be only 10pc overall in the form of equity and 90pc in the form of debt,” he said.

According to new Basel III rules to come into effect in phases between 2013 and 2019, banks will be required to have capital buffers of 7pc of risk-weighted assets.

Mr Miles said it was important that commentators did not ignore the positive impact raised capital buffers would have in seeing off potential financial crises and the greater associated costs.

Why have capital buffers when you've got the taxpayer to pick up the tab.

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Risk Weighted Asset... That still means they can hold trillions of government bond with just few pound of capital..

Think Bank should be more service orientated and start selling HSBC Frapuccino in the future too..

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Think Bank should be more service orientated and start selling HSBC Frapuccino in the future too..

Didn't Foxtons become a cafe chain? All I see in their windows is coffee machines, trendy sofas and bottles of Perrier.

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  • 334 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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