Banks will need a healthy push by governments to fix balance sheets, abandon risky businesses and serve the public to avoid prolonging the financial crisis, the Bank for International Settlements said.

The largest global banks would have needed an extra €485.6 billion in their core reserves to meet Basel capital rules, had the standards been enforced last June.

DUBLIN stockbrokers said yesterday the new Basel III capital requirements being introduced to prevent another global banking collapse will post no serious challenges for Irish banks.

Consumers were warned today that there would be no return to the era of cheap money after tough new regulations were drawn up to boost capital reserves held by banks.

THE subprime crisis is not over yet and could spread to other credit markets, making it important that banks have a strong capital base, a Swiss regulator and prominent member of the Basel Committee said.