Source: The Canadian Press

Canada’s five major banks say they’re ready for stricter banking rules regarding capital requirements as part of the transition to new global rules.

Under Basel III rules, there will be tighter qualifications for what’s considered Tier 1 capital, which is primarily made up of common shares of the banks.

Some banks have also introduced so-called Tier 1 capital trust units, which will no longer qualify and will be phased out over a number of years beginning 2013.

TD Bank (TSX:TD) and CIBC (TSX:CM) say early redemptions of certain capital trust notes won’t be necessary until 2022, the final year of the phase-in period.

Royal Bank (TSX:RY), the Bank of Montreal (TSX:BMO) and Bank of Nova Scotia (TSX:BNS) say they doesn’t expect it will be necessary for them to invoke early redemption clauses for any of their capital trust securities.

The Basel III rules are an international effort to reform banking regulations around the world in order to avoid a repeat of the 2008 credit crisis.