Fitch warns UK banks may have to raise customer charges as global banks need to raise an extra $566bn James Moss, a Fitch analyst, said the banks, which have a collective $47 trillion in assets, would be looking at the full spectrum of ways to meet the new capital requirements. "This is a very dynamic time for banking so the strategic side of bank planning is going to get a lot of attention over the coming years," he said. The report claimed that as past of the process banks would be forced to accept a median fall in return on equity of more than 20pc, from about 11pc over the past few years to about 8-9pc under the new regime. "Basel III creates a trade-off for financial institutions between declining return on equity, which might reduce their ability to attract capital, versus stronger capitalisation and lower risk premiums, which benefits investors," the report said. Fitch also said that banks would face a trade-off between shedding riskier exposures which would require a greater capital buffer under Basel III, but are also likely to generate higher yields. The ratings agency said the findings of the report were illustrative only and had no current rating implications.