On 28 September 2012 the Australian Prudential Regulation Authority (APRA) released the final Basel III capital reform package for Australia. The Basel III capital framework was developed through an international agreement between 27 countries. The framework, which was agreed to in December 2010, is intended to raise the quality and level of capital in the global banking system. The capital reform package for Australia represents an incremental change to the Basel II requirements. The main costs will be incurred by financial institutions in meeting the new capital requirements, which are likely to be passed on to bank customers through higher interest rate charges on loans. The main benefits are likely to be realised through maintenance of confidence amongst investors in Australia’s banking system. The Regulation Impact Statement was prepared by APRA and assessed as adequate by the Office of Best Practice Regulation.