There are several options – among them a global insurance levy, the use of innovative contingent capital instruments developed in the UK, and a global transactions tax.
"There are several options – among them a global insurance levy, the use of innovative contingent capital instruments already developed in the UK, and a global transactions tax," Myners said.
Belatedly the financial regulators in Britain, who like to think of London as Europe's most innovative financial capital, have taken notice.The regulators "feel they're missing a trick," says an investment banker who was involved with the Marshall Wace deal in Amsterdam.
Without innovative adaptive capital planning it will threaten trillions of dollars of the region's built environment, our future water supply, our unique natural resources, our agricultural soils, and our basic economy".
The nature of those investments -- from 30-year fixed-rate mortgages for qualified home buyers to exotic financial products -- has varied over the years, but banks, no matter how innovative, need capital to make it all happen.
In particular, some researchers point out that in the case of small innovative firms, venture capital is a source of external funding preferred by entrepreneurs to debt capital.
Next to its European counterparts, British business is less innovative, employs less capital and draws on a less competent workforce.
All estimations include a series of firm related control variables to account for the firms' innovative capacity, fixed capital inputs and networks.
