Banks worry as US stalls over Basel II

Author: | Published: 1 Dec 2005

As 2005 draws to a close, the implementation of Basel II in the US continues to progress slowly and to frustrate financial institutions.

Last month, an influential banking industry group expressed concerns over the delays and potential deviations from the internationally-agreed Basel II accord. In a report to the Basel committee, the Institute of International Finance (IIF), which represents 340 firms, including most of the world's largest banks, said: "We believe that adoption of inconsistent versions of the accord in different jurisdictions not only would generate additional costly efforts for banks, but also could ultimately disrupt the successful implementation of Basel II, undermine its basic fabric and create serious level playing field issues."

Daniel Bouton, chairman and chief executive of Société Générale and chair of the IIF's steering committee on Basel II, said: "Our members, many of whom operate in many countries, are concerned that different implementation schedules have...