Shares in British banks were up on the FTSE 100 in morning trading following the publication of the new Basel III bank capital rules at the weekend.
Under the new regime banks will be required to hold Tier 1 capital of seven per cent of their risk carrying capital. The rules mean that many European banks are likely to have to raise funds, however banks will have until 2019 to fully implement them.
The seven per cent figure, while significantly higher than the two per cent previously required, is still less than some banks had feared.
By 10:20 shares in Lloyds Banking Group were up 3.27 per cent to 78.09 pence per share, RBS shares increased 2.72 per cent to 49.85 pence per share, Barclays shares rose 1.22 per cent to 323.00 pence per share and HSBC shares climbed 1.95 per cent to 674.40 pence per share.
Overall the FTSE 100 was up 1.10 per cent to 5,562.00.