There may yet be latitude for the industry to sell the Financial System Inquiry on options other than lifting minimum capital requirements for banks.Kevin Davis, a member of the FSI panel, told a Melbourne forum yesterday: "there is no answer yet from academics or industry on whether it's better to have more equity capital or rely on, for example, the bail-in of subordinated debt."The choice of approach will have an impact on the cost of debt for Australian banks, he acknowledged and thus have an impact on the supply of business finance.Davis said there was "a focus on stability [in contrast with] a focus on competition," in the inquiry's interim report.This has "implications for the growth and development of other financial arrangements," he said.Davis advanced a medical analogy to his audience. "We need to do more, like in the medical area, to road test changes," to financial product control, he suggested."I don't think competition in the financial sector gets the benefits you might like. "People buy overpriced financial products."