David Miles, Gilberto Marcheggiano, Jing Yang, 11 April 2011

The authors of CEPR DP8333 assess the optimal level of equity for banks to hold, taking into account costs and benefits both private and social. After considering these overall economic (or social) costs, the authors conclude that desirable equity levels for banks are far higher than actual levels or even target levels under Basel III.


CEPR Policy Research