The chairman of the Australian Prudential Regulation Authority, Wayne Byres, has flagged the likelihood that Australian banks still have some way to go in raising their regulatory capital levels.Speaking at the A50 Australian Economic Forum in Sydney on Friday, Byres said: "Over the year ahead, we'll be watching how the international capital framework is finalised, with a view to establishing an 'unquestionably strong' and robust set of domestic capital requirements for Australian deposit takers."The result of the changes in the pipeline will, in all likelihood, lift capital requirements somewhat higher but still well within the capacity if the banking sector to absorb in an orderly fashion over the next few years."Items on APRA's agenda this year include the development of a total loss absorbing capacity standard. Byres said APRA would be working with the Government to strengthen its failure management powers, as recommended by the Financial System Inquiry.