The European Union (EU) is set to follow the lead of the US by delaying the implementation of the Basel III banking regulations, it has emerged.
Insiders at the EU have informed Reuters that policymakers are ready to push back the introduction of these new rules on the basis that their counterparts across the Atlantic have done so.
Originally, the Basel III guidelines - which will make it compulsory for banks to hold significantly higher capital ratios to protect the financial system from future crisis - were scheduled to be launched worldwide on 1 January.
However, American lawmakers have decided to abandon this target and one EU source told the news outlet it is therefore "not fair" to expect European financiers to go ahead, as doing so would put them at a competitive disadvantage.
"Whatever happens, the new law cannot become effective on 1 January ... the middle of the year would be a realistic assessment," another official noted.
By Claire Archer