Lord Adair Turner, chairman of the U.K.’s Financial Services Authority, says the new capital requirements adopted by the Basel Committee on Banking Supervision don’t go far enough to ensure financial stability. Turner said Basel should have set a core capital ratio of 15% to 20% rather than the agreed 7%. In a speech at the Cass Business School, he also called for regulators to look more closely at risks associated with the so-called “shadow banking” system, largely made up of hedge funds.
