EU capital rules still on a tight schedule following Basle II delay

The European Commission’s timetable for introducing risk-based bank capital rules for the European Union remains very tight following the further delay to the Basle II bank accord, banking industry analysts said in late March.

The commission - the ruling body of the 15-nation EU - wants to apply its third capital adequacy directive (Cad3) to all banks and investment firms in the EU at the same time as the Basle II accord comes into effect for large international banks around the world. Cad3 is closely modelled on the complex and controversial Basle II.

The new timetable (see below) would give the EU in effect a couple of years in which to pass legislation because EU parliamentary elections in 2004 will inevitably