Banks in the US are to be given until 2014 to fully comply with a new regulation, it has emerged.
The Federal Reserve (Fed) has announced that financiers will be afforded the "full two-year period provided by the statute" to reform their business in order to abide by the incoming Volcker Rule.
Under the terms of this new law - which is named after its creator, former Fed chairman Paul Volcker - banks operating in the US will be restricted in terms of the type of speculative investments they are able to make.
Mr Volcker believes that one of the main reasons behind the banking collapse and subsequent global economic downturn was the propensity of lenders to conduct business that did not benefit their customers.
As such, the Fed has decided to implement rules to prevent any repeat of this scenario moving forward but it has also opted to allow companies until 21 July to "conform their activities and investments to the requirements" of the ruling.
By Gary Cooper