Most publicly traded European Union banks have surplus capital and should easily meet the minimum requirements to be set by the Basel Committee on Banking Supervision, according to analysts at Nomura Holdings Inc.

The panel is meeting this weekend to agree on new rules that may force lenders to increase reserves. The committee may set a Tier 1 capital ratio of about 4 percent to 6 percent, as well as an additional buffer of 3 percent for bad times, Nomura analysts led by Jon Peace wrote in a report today, reiterating their bullish view on the industry.

“The great majority of listed European banks already carry equity in excess of these proposals currently, even with two or potentially up to 10 years before the rules begin to apply,” the analysts said. “Banks with high book value growth and high core Tier 1 ratios could be in a position to return to good dividends for 2011,” they wrote “or perhaps engage in some strategic mergers and acquisitions.”

UBS AG may return to paying a dividend in 2011, the analysts wrote. DnB NOR ASA, Norway’s largest bank, is also among lenders that have a better outlook for their dividend yield, the analysts wrote.