STOCK MARKET WATCH -- Wednesday, 12 December 2012

[Demeter]

10. Regulators say EU to delay Basel bank capital rules

http://news.yahoo.com/regulators-eu-delay-basel-bank-capital-rules-125804438--finance.html

The European Union is set to delay introduction of new capital rules for banks by up to a year, the Bank of Italy said on Tuesday, which regulators fear could undermine one of the most important reforms of the financial crisis.

Many officials in Brussels had been expecting a delay following the recent U.S. decision to abandon the January 2013 target and in light of difficulties between EU countries and the bloc's parliament in finalizing the rules.

"We are going towards a postponement of Basel III to the end of 2013, January 2014 at the latest," Bank of Italy Director General Fabrizio Saccomanni told a meeting of business leaders in Rome.

The delay deals a further blow to the global Basel III accord, which was struck by central bankers and regulators meeting in Basel, Switzerland, in a bid to make banks less risky. The accord requires banks to set aside more capital to cover losses such as unpaid loans and had been due to start from January 1, 2013...