The Reserve Bank is proposing that banks will have to hold between 20% and 60% more "high quality" capital, noting this represents about 70% of the banking sector's expected profits over a five-year transition period. Nonetheless the regulator expects only a "minor impact" on customers' borrowing interest rates. The Reserve Bank has issued a consultation paper as part of the broadest review of bank capital adequacy requirements it has undertaken, which has been running since early last year. It says it wants bank owners to increase the level of capital they contribute to their business. “Insisting that bank ... (full story)