Prudential supervisor APRA will this morning reveal its plans for implementing the capital requirements of the world-wide Basel III agreement.In a discussion paper, to be released at 8am, the Australian Prudential Regulation Authority will explain planned changes in its prudential framework that will shape banks' capital structure and asset mix. The release of the paper marks the start of an extended consultation period between APRA and the industry.Basel III is described as a "framework" in part because national regulators have considerable latitude in how they implement it. There has been speculation that APRA could take this opportunity to apply the rules relatively tightly or to go beyond what the agreement strictly requires.For instance, the paper is expected to contain a timetable for the transition to the Basel III rules. They are due to be phased in globally between 2013 and 2019. But Wayne Byres, APRA's executive general manager for diversified institutions, said, in March, that APRA was considering whether the Australian banking industry needed such a long transition period to the new capital rules.A quicker transition would be unlikely to cause difficulties for most Australian banks. APRA has repeatedly stressed that Australian banks are well placed to meet the capital rules without substantial capital raisings.A second and potentially more contentious discussion paper, on liquidity requirements, will be released later this year.