Robert Peston on recapitalisation

Central bank governors and senior regulators are to impose tighter restrictions on the level of assets banks must hold, the BBC has learnt.

In the future, they will need a "tier one capital ratio" of at least 7%, meaning they must have $7 in their vaults for every $100 in customers' accounts.

The current requirement is just 2% in reserves and the new figure is designed to protect the world's banks in future.

The BBC's Robert Peston explains.

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