BoE's King says Basel III is not enough to prevent crises

Mervyn King, governor of the Bank of England, said tougher rules established by the Basel Committee on Banking Supervision are not enough to prevent repeats of the financial crisis. "If it is a giant leap for the regulators of the world, it is only a small step for mankind," he said. "Basel III on its own will not prevent another crisis." King also said banks should reduce their reliance on short-term debt and raise more money from stock investors. "The broad answer to the problem is likely to be remarkably simple," King said. "Banks should be financed much more heavily by equity rather than short-term debt -- much, much more equity; much, much less short-term debt."

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