Large international banks are on course to meet tougher capital rules drawn up by global regulators in a bid to stave off financial crises, the Basel Committee on Banking Supervision said.
Global banks had core capital reserves equivalent on average to around 9 per cent of their risk-weighted assets at the end of 2012, above the 7 per cent required under the updated Basel standards, the group said.
While some individual lenders still have a shortfall, this is "well below half the aggregate annual profits of the industry."
The group said that 25 of its 27 member countries have adopted the capital standards, which are set to fully take effect by 2019. The remaining two, Indonesia and Turkey, "have draft rules in place and efforts are under way to finalise them."
The Basel committee brings together bank regulators from nations including the UK, US and China.
