Following a report released in March that there is a significant shortfall in the capital stockpile in the banking sector, both RBS and Lloyds released a statement confirming that they would be able to meet the new regulations.
Stephen Hester, the Chief Executive Officer of troubled bank RBS said there had been great 'progress and momentum' in recent months as the organisation attempts to regain its financial health.
Lloyds in the meantime also said it was in good shape, confirming it would not need to resort to carrying out further equity fundraising in order to fulfil its obligations.
Both banks had to be rescued by the government during the credit crunch crisis of 2008 and have remained partially publicly owned ever since. However, the plan is to allow the banks to regain their private status once they are in a position to pay back the public money used to support them.
The share price for both organisations has rocketed during 2013, bolstering hopes that the buy back could happen within the next twelve months.
In the FTSE 350, the banking sector has been on the front foot in the last five months, adding 19 per cent, making a total increase in the last year of an impressive 53 per cent.