Dus Cline probeert te berekenen waar de optimale balans ligt, met medeneming van het feit dat het risico op falende banken naar nul brengen irrationeel hoge kosten kan opleveren.
So Cline attempts to calculate where the optimal balance might lie, recognizing that to reduce the risk of bank failure to zero might carry irrationally high costs. Cline’s conclusion is that “the optimal capital ratio is 7% to 8% of total assets, corresponding to 12% to 14% of risk-weighted assets (using the ratio of risk-weighted assets to total assets in euro area and US banks).”