Basel II delay looking increasingly likely

The financial industry's drums are beating strongly for a further delay to the implementation deadlines for Basel II, and such a delay is beginning to look increasingly likely, according to those close to the Basel Committee on Banking Supervision.

A substantial number of respondents to the third consultative paper (CP3), issued by the Basel Committee in April, have asked for a delay of some sort in order to better prepare themselves for the new framework. Emerging market respondents, in particular, have pointed out that a 2006 deadline for implementing the framework is unrealistic, given the limited financial and human resources many institutions in those markets are faced with. Also, sophisticated international banks have asked for a