Several major banks are still facing the possibility of penalties for misconduct in the years leading up to the global financial crisis, which continues to weigh on their capital positions, according to a new report from Fitch Ratings Inc.

Specifically, uncertainty about the size of the penalties that big banks could face for misconduct in the creation and sale of U.S. residential mortgage-backed securities (RMBS) prior to the global financial crisis continues to impact certain banks’ capital management, the credit-rating agency’s report suggests.

“The threat of large, unpredictable settlements hangs over a few European banks that have not settled yet, adding to the pressure on earnings and capitalization from low interest rates and increased regulation,” the Fitch report says. “As a result, we expect banks will continue to prioritize cautious capital management and dividend policies, even though most have strengthened capital positions considerably since the financial crisis.”

Global banks have already faced US$31 billion in penalties from U.S. Department of Justice (DoJ) investigations into their pre-crisis RMBS business, the Fitch report states. Most recent, Deutsche Bank AG and Credit Suisse AG settled cases with the DOJ, agreeing to billions in fines and consumer relief.

“Monetary fines have only constituted part of the settlements and substantial amounts have been agreed in the form of so-called consumer relief, which we believe are proving far less punitive in financial terms,” the report says, noting that this relief can include measures such as loan forgiveness, lower cost loans and financing for affordable housing for their most vulnerable customers. The banks have several years to provide this relief.

Investigations into several other banks, including Royal Bank of Scotland, Barclays PLC, UBS Group AG and HSBC Holdings PLC are ongoing, the report says: “We do not expect the outstanding investigations to lead to significant new restrictions on banks’ businesses or to damage their franchises. Banks have tightened conduct risk controls extensively in the period since the RMBS activity under investigation took place.”