ONLY SIX globally important banks are likely to be subject to new Basel III banking rules from the internationally agreed start date, the Basel Committee warned yesterday, as most countries have failed to meet the requirements as planned.
The rules are meant to come into effect on 1 January 2013.
But less than three months away from that deadline, only eight of the 27 countries involved have issued final regulations on time.
The US and the EU are both set to miss the deadline.
Part of the problem in the EU comes from disagreements over the rules’ interpretation.
The Committee believes the EU is “materially non-compliant” in definitions of capital and the internal ratings-based approach to credit risk – though the European Commission disagrees with the scale of the reported divergence.
Japanese authorities have still not issued rules on capital buffers, but are expected to do so by 2015.
And the US is “materially non-compliant” in securities exposures, with the Basel Committee fearing the Dodd-Frank Act’s prohibition on the use of external credit ratings cannot be proved to be stronger than the international agreement’s proposals.
Again, the US authorities disagree with the Committee’s assessment of their proposed rules.