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Some Israeli officials have spoken of a bigger buffer zone along the Gaza border.
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BBC business editor Robert Peston said: "The Bank of England hopes that the imposition of a leverage ratio will force banks to have a bigger buffer of loss-absorbing equity to protect them against the inevitable shocks that lie ahead.
Mr. Fisher began by agreeing wholeheartedly with Morris Goldstein and stressed that even the most junior credit analyst at BlackRock knows higher equity for banks lowers their required rate of return on equity, because a bigger buffer against losses and potential insolvency means that the equity of that bank becomes safer.
Regulators argue that a bigger buffer of capital makes banks less reliant on borrowed money and enhances the stability of the financial system.
Although the regime, called Basel 2, will not come into force until January 2007 at the earliest, it seems already to be having a big impact on bank behaviour.Since banks know that certain credit and operational risks will need a bigger buffer of regulatory capital, they are already cutting loans to riskier borrowers.
The cost of debt falls too, since creditors have a bigger buffer beneath them.
If it allowed the bank's tangible common equity to dip below 3percentthathat would give Wells a bigger buffer.
It's a big buffer zone of a table here in Studio 1.
On September 17th Eric Dinallo, New York's insurance regulator, vouched for the solvency of AIG's insurance subsidiaries but was more circumspect on the company overall.Ultimately, though, AIG may turn out be worth something after all: in June it had $67 billion of tangible equity, a much bigger buffer relative to assets than existed at Lehman or Bear Stearns.
Borrowing for 2010/11 has been revised downwards to the tune of £1.8bn, giving the government a somewhat bigger buffer over where the OBR thought they would be at that stage.
It must make clear that the timing of bigger buffers can be staggered and that their cost must be compared with the benefit of fewer meltdowns (the Bank of England reckons global GDP in 2009 would have been 6.5% higher without the crisis).
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