The chair of the Australian Prudential Regulation Authority says he wants banks to stop bullying it for its stance on capital rule adjustments.

APRA chair Dr John Laker also said he wants the government’s financial system inquiry not to “turn back the clock” on banking rules.

Dr Laker was speaking primarily in response to ANZ group CEO Mike Smith and UBS global leader Axel Weber. Both top executives have put pressure on the regulator to hold off on new rules until the industry knows more about the possible global effects.

Dr Laker wants banks to get into the habit of setting aside piles of capital for safety, and may enforce the stance with new regulations, but the bank bosses see their role as helping the economy through increased lending.

Treasurer Joe Hockey has backed APRA’s stockpiling plan, saying it would provide “a more stable and predictable framework” coming out of recent financial crises.

Such regulations are a key factor in this weekend’s planned meetings between the G20 finance ministers and global bank representatives in Sydney.

The leaders of the global finance system want to work out ways to stimulate economic growth and shock some markets out of their languor.

Many international financial regulators - and Australian authorities too - want to tighten the rules on banks and force them to make more reasoned decision. Most of the large institutions oppose this.

Dr Laker has dismissed the Commonwealth Bank’s claims that APRA’s stricter capital conditions are preventing the bank from fully engaging in global markets.

“For business, and for the global economy, the best outcome will be for the G20 finance ministers to finish implementing what was earlier agreed, pause and take stock of the ‘real economy’ effects of post-GFC regulation,” Dr Laker wrote in a piece published by the Australian Financial Review.

“Regulators want to complete the reform in part by having banks hold substantially more capital, a goal which the financial industry supports.

“Nonetheless, this vies with the broader policy aim of lifting growth by increasing available credit and bank lending,” he wrote.

“Recently, new proposals regarding the capital framework have added to the risk that regulatory reforms could undermine economic activity,” Dr Laker purported.

The man soon to replace Dr Laker in the top APRA spot is Wayne Burns, whose opinions are slightly more difficult to plumb.

“We don’t want to force everyone onto a single model,” Mr Burns says.

“But we do need to do something to address [the] excessive variability, and there is a number of things we are working on there.”