WASHINGTON - Troubled institutions pose more risk to the insurance funds than regulators recognize, the Shadow Financial Regulatory Committee said Monday. Accordingly, it declared that capital minimums should be increased, Accounting rules do not force banks to mark all assets to market, so an institution's capital may be overstated, the committee said.

The group of academics, lawyers, and bankers suggested raising the total risk-based capital requirement for well-capitalized institutions to 11% from 10%. Adequately capitalized institutions would have to hold risk-based capital of 9%, up from 8%.

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