Bank Capital should be 13 pct - Basel Committee

The problem with defining the appropriate level of capital that banks should hold on their balance sheet is that in a general panic no amount of capital is adequate to deal with a bank run. For many decades banks could get by with wafer-thin margins of safety as generally confidence in the integrity of the banking system was high. Tinkering with capital requirements may be but one step in the right direction. Banking reform needs additional measures to be successful.