Australia's big four banks should not have to raise additional capital to meet the Reserve Bank's proposed capital requirements, S&P Global Ratings said.

The Reserve Bank is consulting on a proposal to lift the minimum common equity requirement to 16 per cent of risk-weighted assets from 8.5 per cent currently for the four major banks.

As it stands, the equity held by the banks averages about 12 per cent.

The banking sector has put up stiff resistance to the Reserve Bank's proposals, saying the moves will increase the cost of mortgages.

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But S&P said the proposals should not impact on