Home Breadcrumb caret Industry News Breadcrumb caret Industry Why banks need more capital Stringent banks regulation is important for two reasons. By Staff | June 3, 2014 | Last updated on June 3, 2014 1 min read Princeton University economist Hyun Song Shin says stringent banks regulation is important for two reasons, reports The Wall Street Journal. Not only can banks help economies maintain stability, but they can also boost growth through lending. The Wall Street Journal adds Shin recently spoke about this topic at a European Central bank forum in Portugal, where he offered up a metaphor to show how bank equity, lending and leverage all need to be balanced to keep institutions—and economies—afloat. Read more about that metaphor here. Also read: Too much regulation stifles growth, says Scotiabank 13 accounting red flags Canada vulnerable to global risks Staff The staff of Advisor.ca have been covering news for financial advisors since 1998. Save Stroke 1 Print Group 8 Share LI logo