In some countries it is the central government, in others it is the central bank, and in still others authority is in the hands of a committee that involves different national bodies (crossinstitutional committee).
Given its importance, we have been undertaking a review of the optimal level of capital for the New Zealand system. We conclude that more capital is better. We are sharing our work with the banking sector and public, and expect to hear one side of the story loud and clear, that capital costs banks.