The Australian government has announced a raft of new regulations that will see the nation's four major banks set aside an additional one per cent of equity capital to protect against any future financial crisis.
Under the new regulations, Australia and New Zealand Banking Group (ANZ), National Australia Bank (NAB), Westpac Banking Corp (WBC) and Commonwealth Bank of Australia (CBA) are expected to have additional reserves set aside to meet the January 2016 deadline.
The Australian Prudential Regulatory Authority (APRA) said that phase-in arrangements beyond the initial two-year lead in time are not necessary.
The announcement is the latest in a long line of attempts around the world to improve the banking and finance industries.
In the UK, a banking reform bill has been presented to lawmakers, while in Europe, a single banking union has been agreed.
It is hoped the new rules and regulations being implemented around the world will reduce the likelihood of another financial crisis in the future.
By Claire Archer