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Member States and the European Parliament made progress last week on a draft law to implement Basel III, the world's main regulatory response to undercapitalised banks that had to be rescued during the 2007-09 financial crisis... However, on Tuesday morning Sharon Bowles told the European parliament's economic affairs committee, which she chairs, that there should be wider consultation with lawmakers on last week's proposals.
The EU joins another major banking centre, the United States, in delaying the introduction of the Basel rules.
Last week's talks proposed a compromise whereby bankers' bonuses would be capped at no more than twice the level of their salaries. In return for the cap on bonuses, it was agreed that EU governments would have a say when it comes to introducing other key elements of Basel: new liquidity buffers for banks and a cap on their balance sheets from 2015.
Lawmakers are expected to delay implementing Basel until formally January 2014. Only 11 of the G20 countries are ready to start phasing in the accord from next month.