Basel III should aim higher on capital targets, says Bank of England

Bank of England

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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