Worldwide banking reforms are unlikely to be completed on time, a new report has indicated.
The Basel III regulations have been designed in order to prevent any repeat of the recent financial crisis whereby many lenders required state-funded bailouts by compelling companies to boost their reserve capital ratios.
These changes are scheduled to come into effect as of the beginning of next year, but analysis conducted by the Financial Stability Board (FSB) has revealed that "uneven headway" is being made in the implementation of these plans, the Financial Times reports.
Indeed, the FSB noted that many banks will need an extension to the deadline of the end of this year to produce their so-called "living wills", adding that just eight of the 27 members of the Basel Committee on Banking Supervision will have adopted the reforms by January 2013.
Mark Carney, chair of the body, commented: "The tasks ahead remain considerable ... it is crucial that all jurisdictions redouble their efforts to pass legislation that is consistent with the Basel III framework."
By Asim Shah