17th March 2011
After a blast from the Governor of the Bank of England Mervyn King at the start of the month, this week it was the turn of Financial Services Authority chairman Adair Turner.
Bloomberg reports Turner's concerns here including the fact he believes creditors should take a bigger hit when banks get into trouble, a concept popularly known in investment circles as taking a haircut though Turner seems to think it should be more than just a trim.
But Turner doesn't want banks to fail at all and has suggested that the amount of capital they should be required to hold should be as high as 15 to 20 per cent of their risk assets.
That is much higher than the planned 7 per cent required under Basel III, named after the European city that straddles the Swiss, French and German borders and which houses another bank supervisor the Bank for International Settlements.
The reform will be phased in from next year but the provisions come fully into force in 2019.
King caused headlines earlier this month when he gave an interview to the Telegraph suggesting the world was at risk of another banking crisis.