Well, as a matter of fact it doesn’t seem like they do—they want 8%-15%. You could start a bank that promises to stay at e.g. 30% equity, but the market seems to indicate that you’ll have a hard time finding investors. Banks work hard to differentiate themselves since they ultimately offer very similar products, and I don’t know of any large bank that successfully differentiates by having high equity ratios.
Well, as a matter of fact it doesn’t seem like they do—they want 8%-15%. You could start a bank that promises to stay at e.g. 30% equity, but the market seems to indicate that you’ll have a hard time finding investors. Banks work hard to differentiate themselves since they ultimately offer very similar products, and I don’t know of any large bank that successfully differentiates by having high equity ratios.