Seems a bit contradictory. On the one hand, the banks say they are over capitalised while King says the opposite. If pressure is mounted on the banks to increase their capital buffers to avoid another potential tax payer bailout, the banks simply won't lend to the economy. If on the other hand, the rules are relaxed a little the banks will have more impetus to lend and get the economy growing by providing more liquidity. What to do???
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