As Basel III changes to bank capital levels are being announced and implemented there’s been a surge in articles on bank capital levels. How much capital is required, what type of capital is required and how minimum capital levels should be measured and set are all hot topics. Banks complain that having to hold more equity will reduce their returns and thus means they have to charge customers more. Governments want strong banks, so that they and their voting taxpayers don’t have to pay the bill whenever a bank strikes trouble. Every proposal comes with a cost, but which give the most bang for buck?