Europe’s implementation of Basel capital rules “could and should” be postponed if the US adjusts its own version of the capital rules, said the governor of the Bank of France, claiming that an unfair application of the rules will hurt European banks’ competitiveness.
Basel III regulations are set to come into effect in January of next year in Europe, ahead of the US and UK. While US regulators this month committed to “fully and faithfully” implement the Basel III international minimum bank capital rules, reports suggest the US may opt to adopt an adjusted version of the rules instead.