Major banks across the world could need to raise an additional $566 billion in capital in order to comply with the new Basel III regulations.
That is according Fitch Ratings, which has published a new report today (18 May) that questions the ability of financiers to meet the requirements laid down in these updated rules.
The agency indicated that, at present, a group of 29 "global systemically important financial institutions" - such as Barclays, HSBC and Lloyds Banking Group - are significantly below the level of tier 1 capital they will need to retain as of the beginning of next year.
"Basel III creates potential incentives to reduce expenses further and to increase pricing on borrowers and customers where feasible," Fitch added.
With this in mind, the group noted the banks will have to consider taking measures such as reducing pay and bonuses and increasing charges attached to customer loans and deposits.
By Claire Archer