(MENAFN) The European Banking Federation called for the European Commission to delay the introduction of the Basel III rules until January 1, 2014, reported Gulf Daily News.
The federation, which represents European banks, said in the letter sent to EU Internal Market Commissioner Michel Barnier, that US regulators told them they did not expect the new rules to be effective next year, therefore, if the EU introduced the capital rules, then EU banks would be at a competitive disadvantage with US counterparts.
The rules are the world's regulatory response to the 2007-2009 financial crisis, and will compel banks to triple their basic capital to evade future taxpayer bailouts.
According to a spokesman for Barnier, the commissioner will seek clarity from the US and work for a coordinated US-EU approach.
He added that Basel III rules are vital for sound and competitive banks in Europe and are meant to start from January 2013.
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