Morgan Stanley predicts that US banking giants may need four years to set aside revenues to meet new capital regulations.

The Basel III endgame, proposed by US regulators, will increase risk-weighted assets (RWA) of major US lenders to 20% from 12%.

These new regulations force banks to set aside greater capital for RWA.

Citigroup and Goldman Sachs are expected to take the longest time to meet the higher capital requirements.

JPMorgan Chase and Bank of America may raise capital in two years, with most banks requiring most capital due to operational risks and trading books.

The Federal Reserve and FDIC will propose implementing Basel III, followed by a public comment period.