European timetable threatened by CP3 delay

The European Union's timetable for bringing new risk-based bank capital adequacy rules into effect is in jeopardy following the decision of global banking regulators to delay publication of a key consultative paper.

The delay could result in major EU banks being at a competitive disadvantage to their US, Canadian, Swiss and Japanese rivals, who will be able - for a protracted period - to enjoy lower capital charges not available to European banks, banking industry analysts said.

European parliamentary elections due in June 2004 threaten the EU's delicately balanced timetable. The EU planned to have its new rules in place around the time in 2005 that the Basle Committee on Banking Supervision, the body

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