The Reserve Bank of Australia (RBA) analysis shows Australia's banks will be able to satisfy the Basel III requirements.

Based on a study by two economists from the RBA's financial stability department, banks in the country have been preparing for a more unstable commercial environment in the same way they did after the recession of the 1990s.

Economists Adam Gorajek and Grant Turner said, “Australian banks appear to be better placed to meet the new capital criteria than banks in a number of other countries.” The banks have increased 85 cents in new capital for every dollar of new risk-adjusted lending since the global financial crisis.

The Australian Prudential Regulation Authority (APRA) was identified as the reason for the banking sector's capabilities. During the financial crisis years of 2008 and 2009, the banks raised $30 billion in fresh equity raisings and even increased their retained earnings as they cut dividends.

During the GFC, governments intervened to prevent banks from incurring losses with their Tier 2 capital which is largely composed of subordinated debt. The Tier 2 capital dropped $12.4 billion, while the Tier 1 capital jumped by 25 percent or $26 billion. Total capital now stands at 11.8 percent of risk-weighted assets.