By Noriyuki Hirata and Krista Hughes

TOKYO/FRANKFURT, Dec 16 (Reuters) – Global regulators will give banks a grace period before forcing them to implement stricter capital rules, three people said on Wednesday, easing concerns that lenders might need to issue massive amounts of shares in the near future.

Shares of major Japanese banks surged on the news, with Mizuho Financial Group Inc and Sumitomo Mitsui Financial Group Inc both gaining more than 14 percent.

European bank shares rose 1.3 percent on relief that banks would have more time to adjust to new rules being drafted by the Basel Committee on Banking Supervision, made up of central bankers and regulators from nearly 30 countries.

The committee is expected to publish proposals this week for stricter financial regulations in response to the credit crisis. There had been fears that if banks implement the new rules quickly, they would have to raise substantial capital.

The three people with knowledge of the matter said the committee would stick to its plan to gradually implement changes starting in 2012, but will give banks a transition period to help them adjust to the rules.