The result will be that RBS's core capital ratio hits a whopping 12.4%, about double the level at JPMorgan Chase, America's soundest big bank.
The big banks will breathe a sigh of relief that 10% is expected to emerge as the new norm for their core capital ratio - partly because they have taken pre-emptive action and already meet that target.
Michael Trippitt of Oriel Securities said HSBC had been looked at unfairly by the market for having a relatively low core capital ratio, a key measure of a bank's reserves to back up its lending and investment portfolio.
The bank had a tier 1 capital ratio of 11.3% at the end of the second quarter, while its core tier 1 ratio, which excludes hybrid capital instruments, stood at 7.5%.
By the end of June 2012, banks are expected to establish a core-capital ratio of 9%.
Barclays has a core tier 1 ratio of 10%, HSBC 9.9%, Lloyds 9%, Royal Bank of Scotland 10.5% and Standard Chartered 9%.
And then it assumes the banks would need to preserve a core tier one ratio of either 7% or 8% on these stressed scenarios by the end of 2012.
The core Tier 1 ratio will rise to 7%, slightly less than expected but still a lot better than before the crisis (at the end of 2007, Royal Bank of Scotland had a ratio of just 3.5%).
Mr Miles said that the optimal ratio of core tier one equity capital to risk-weighted assets would be 19%.
Banks will also be forced to increase their core tier 1 capital ratio to 9% by the end of 2011 and 10% by 2012, according to a note by Nomura.
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The bank's so-called core Tier 1 capital ratio under new regulations known as Basel III rose to 8% from 6% a year earlier, then dropped to 7.8% after the bank provisioned for legal costs.
The bank's profit number beat consensus forecasts by about 5 per cent, and the core tier one capital ratio -- a key measure of financial strength -- was also slightly ahead of expectations at 12.3 per cent.
While the bank reported that its core Tier 1 capital ratio grew to 10.5% from 9.4%, it dedicated a large chunk of its report to the proposed Basel III and the negative repercussions it would have on its business.
Analysts believe the lender could have a core tier one capital ratio of close to 20 per cent initially, falling to 9 per cent -- the level required by the troika agreement -- in three years' time once losses have been incurred and recognised.
On Dexia, it was only on July 15 that the European Banking Authority disclosed that this retail and public-sector finance bank would have a ratio of core Tier One capital to assets of 10.4%, even after incurring notional losses from harsh simulated financial and economic conditions.
By raising money, BoCom's core Tier-1 capital ratio will jump from a barely adequate 8% to more than 10.4%.
Yet not accepting that preferred to common stock ratio is at the core of the Winklevosses appeal in California.
The current level of core deposits could support ten percent more loans and still be at a very conservative ratio.
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