Financial Stability Board Chairman Mario Draghi renewed calls for capital rules for the largest lenders that go beyond the Basel III proposals earlier this month from global regulators.

Draghi said in Paris today that systemically important financial institutions should have the ability to absorb more losses than smaller banks. Draghi, who is also governor of the Bank of Italy, made similar comments in newspapers in the U.K. and his home country earlier this month.

...Adair Turner, the chairman of the U.K. financial regulator, last week also said he would have set higher capital requirements for systemically important banks.

The regulators and central bankers at the FSB are studying what types of extra capital beyond the Basel III requirements could be sought for the largest lenders, including capital surcharges, contingent capital such as convertible bonds, or “bailed-in assets.”

“The FSB and the Basel committee have been very clear about this issue -- there will be some sort of additional capital requirement coming for the biggest banks soon,” said Barbara Matthews, managing director of BCM International Regulatory Analytics LLC in Washington. “Big banks should be worried, and are already worried, because the combination of all these new rules will have a great impact on their business models and profitability.”