Joe Hockey may be talking the language of giving the industry until March 2015 to respond to the final report of the Financial System Inquiry, but the intellectual weight of the work of David Murray's panel may bear on the industry sooner than that.There are a number of pointers in the FSI's report, and elsewhere, that the Australian Prudential Regulation Authority has already updated its thinking on key policy questions.The sufficiency of bank capital in an international context - the key theme of the Murray inquiry - is a topic that's been given a warm embrace by APRA.APRA chair, Wayne Byres, used the AB+F Randstad Leaders Lecture Series in Sydney earlier this month to relate data very similar to that now produced by Murray. Byres, at the time, said: "the question remains: is that [level] adequate?". The strong inference was that he shared Murray's view that the answer was 'No'.APRA may well also be a convert to the plan to harmonise risk weights on home loans (reported below), to the detriment of the competitive position of big banks. Voices among major banks adopted a mostly ritual response to the final Murray report, without fully engaging with central controversies.Phil Coffey, deputy chief executive officer at Westpac, said in a media release that: "we agree it is important that the Australian banking sector is strongly capitalised … we believe we are strongly capitalised."Graham Hodges, Deputy CEO at ANZ, said: "We agree Australian banks should be unquestionably strong and that APRA is the right organisation to assess where banks are placed globally and appropriate capital levels."Hodges at least tackled one issue, when he added that: "Increasing risk weights on major banks mortgages for competitive reasons appears at odds with Basel's risk based approach to regulation." "It seems to discount the significant investment in achieving and maintaining an advanced risk based model approach and ignores other factors that make the major banks more efficient," he said. Smaller banks see a few rays of sunshine in the FSI report, which, according to a joint media release from BOQ, Suncorp Bank, ME Bank and Bendigo and Adelaide Bank,  "acknowledges the need to level the playing field in banking." Mark Degotardi, acting CEO of the Customer Owned Banking Association said the Murray recommendations on bank capital would "make the entire system stronger while getting rid of anti-competitive distortions that benefit the biggest banks." Degotardi went on to charge major banks with "exaggerating the impact of higher capital requirements."The treasurer, Joe Hockey, is for the time being in line with Murray.At yesterday's media briefing he said "Australia's bank capital needs to be unquestionably strong on a global basis. "This means the top 25 per cent in the world."