Europe is set to delay its decision on how to implement Basel III bank liquidity rules beyond a June 30 deadline.
Banks may be pushed by the European Union to hoard extra capital buffers beyond minimum requirements proposed by global requlators last month.
European Union attempts to win exemptions from U.S. rules for swaps trading platforms that take effect today have been hampered by the partial shutdown of the American government.
European Union negotiators face a clash over rules forcing investors to shoulder some of the losses at failed banks just days before a vote on the legislation.
Banks using U.S.-based clearinghouses to handle their swaps trades are set to win a reprieve from tougher capital rules as the European Union said it will take more time to assess whether American regulations are strict enough.
"Commissioner Barnier has said that he wants to set out for ministers areas of ongoing work with U.S. authorities to align our rules and make sure that the financial sector has coherent and robust regulations."
- Chantal Hughes on Sep 05, 2014