This could be done if the central bank offset its purchases of foreign exchange and gold with sales of government securities on the domestic credit market.
The size of any shortfall hinges on how much regulators will let the bank offset its projected capital needs with actual gains in the first three quarters of this year.
"If the current turbulent conditions prevail throughout the quarter, UBS will probably see a very weak trading result in the investment bank, offset by predictable earnings from wealth and asset management," UBS said as it reported its second-quarter earnings.
He announced an intention to close tax loopholes exploited by multinationals such as Google, and measures to stop banks offsetting losses incurred during the financial crisis.
Australia's S&P/ASX 200 moved up by 0.6%, or 21 points, to 3,756.60 points, with gains among the banks offsetting a decline by mining stocks.
During the crisis, for example, banks such as JPMorgan Chase saw a sudden slump in investment banking offset by their retail-banking income, and vice versa.
The banks offset past losses against their taxable income.
The lack of trust has intensified because some banks offset big risks by purchasing insurance against defaults, and now the insurance seems dicey.
The big Netherlands-based banking group ABN Amro Holding N.V. reported a 13percentt gain in first-half earnings, to 1.63 billion euros, or $1.5 billion, although increased costs, notably for employee bonuses in investment banking, offset gains in fees and commissions.
In Australia, where regulators required banks to cut the interchange rate for Visa and MasterCard purchases to 0.5percentt from 0.95percentthethe banks offset their loss by reducing rewards programs and raising annual fees, according to a 2008 report by the Government Accountability Office.
The results included a surprisingly strong showing in a depressed climate for investment banking offset by the undisclosed loss on a mishandled purchase of stock from Vivendi Universal in January.
