The Bank of England (BoE) is expected to tell the UK's banks they must raise billions more in capital to absorb potential losses.
The BoE's Financial Policy Committee (FPC), which began work last year, will make the ruling later on Wednesday.
Last November, the BoE suggested up to £60bn of extra cash may be needed.
BBC business editor Robert Peston says in the short term the move will be bad news for investors, including taxpayers who still own big stakes in two banks.
Taxpayers still own more than 80% of Royal Bank of Scotland and almost 40% of Lloyds, more than four years after they were bailed out by the government.
The need to raise more capital may delay plans to sell the stakes back to private investors.
Our correspondent says UK banks have been taking steps to strengthen themselves since the financial crisis began, but they still do not have enough capital.
He says the view of the BoE is that the banks will not provide the credit needed for economic recovery unless and until they raise additional capital.
The BoE's announcement is due at 0930 GMT.
Regulation overhaulIn its Financial Stability Report released in November last year, the BoE said banks may need to raise as much as £60bn to cover potential costs relating to hidden losses, regulatory demands and potential fines for mis-selling.
End QuoteCyprus is a reminder that the notion of the banks having to absorb big additional losses before too long is not a purely academic one"
The FPC, which formally gained powers in December, is expected to say how much must be collectively raised by the banks, but will not say how much specific banks need to raise.
The Bank of England's FPC has overall responsibility for financial regulation in the UK and is part of a new order of regulation designed to keep the banks under closer scrutiny.
It will oversee two new financial watchdogs: the Prudential Regulation Authority (PRA), which will take over responsibility for supervising the safety and soundness of individual financial firms, and the Financial Conduct Authority (FCA), which will be tasked with protecting consumers and making sure that workers in the financial services sector comply with rules.
The new watchdogs will replace the Financial Services Authority (FSA), which is set to close next week.
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