Jan. 24 (Bloomberg) -- Delays in implementing Basel III capital rules aren’t “critical” at this stage, according to the head of the global group of regulators that set the measures.
“Any setback to implementation is undesirable, since Basel III is a key platform on which to rebuild a stronger global banking system,” said Stefan Ingves, chairman of the the Basel Committee on Banking Supervision. “But the delays are not critical at this point,” he said in prepared remarks for a Cape Town speech.
The EU and the U.S. missed the January deadline to start implementing the new measures, amid calls from some officials for the so-called Basel III rules to be scrapped in favor of a simplified form of bank regulation. The 2013 start date was supposed to be the start of a phase-in process for Basel III that runs until 2019.
The “lengthy phase-in period” means “that in 2013 the new requirements should not be particularly burdensome for banks,” he said, noting that “none of the new deductions from capital are applied this year.”
“Many regulators who have been unable to implement the new standards by the beginning of this year are still measuring and monitoring their banks’ capacity to meet the new requirements,” he said.
To contact the reporter on this story: Peter Chapman in Brussels at email@example.com
To contact the editor responsible for this story: Peter Chapman at firstname.lastname@example.org