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Canada's major banks, the headquarters of which are shown here, say they're ready for tougher new global banking rules. ((Adrien Veczan/Canadian Press))

Canada's major banks have begun responding to new guidelines issued last week by the federal banking regulator as part of the transition to new global rules.

Under Basel III rules, there will be tighter qualifications for what's considered Tier 1 capital, which is primarily made up of common shares of the banks.

Some banks have also introduced so-called Tier 1 capital trust units, which will no longer qualify and will be phased out over a number of years beginning 2013.

TD Bank and CIBC say early redemptions of certain capital trust notes won't be necessary until 2022, the final year of the phase-in period.

Royal Bank says it doesn't expect it will be necessary to invoke early redemption clauses for any of its capital trust securities.

The Basel III rules are an international effort to reform banking regulations around the world in order to avoid a repeat of the 2008 credit crisis.