Saturday, June 05, 2010

Basel III will be delayed further

Tougher capital and other rules for banks are likely to be held back for longer than thought earlier, FT reports. The UK and the US believe that delay in implementation is preferable to diluting the norms.

The Basel rules were originally expected to be phased in by the end of 2012, but sources familiar with the discussions said that the latest idea was that the new rules were likely to be put in place between 2014 and 2016.

Another G20 source said that the transition period did not matter much because once the new regulations were agreed, banks would come under enormous pressure to meet them quickly or explain why they could not, even if the formal transition was much longer.


K.R.Srivarahan said...

It is unrealistic to expect that implementation will be faster than conception in the case Basel III. INDIA HAS BEEN AMONG THE MORE ENTHUSIASTIC COUNTRIES IN IMPLEMENTATION OF BASEL I AND II THANKS MAINLY TO RBI'S ZEAL. Yet the process took an enormously long time. Therefore, to expect that operationalisation of Basel III in India and elsewhere would be a cakewalk is nothing but triumph of hope over experience.

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