Many regulators would like to see bank capital requirements


Many regulators would like to see bank capital requirements raised. Consider a proposal to increase the minimum Tier 1 and total capital ratios to 9 percent and 12 percent, respectively. What impact would this have on bank risk? Would small banks and large banks have equal opportunity in meeting these requirements? What impact would this have on banking industry consolidation?

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Financial Management: Many regulators would like to see bank capital requirements
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