The Basel Committee has been unable to finalise its much-derided rules on bank capital (named Basel IV by the market) while US President Donald Trump fills key positions in his government.
Reaching an agreement on the reforms has been complicated by conflicting views on so-called output floors, which help banks to estimate asset risks. The US is a major advocate of the floor and has always been sceptical of internal models in the name of ensuring a level playing field, while European banks and regulators argue that the models are more accurate.
Federal Reserve governor Daniel Tarullo resigned in February after seven years in the position. The new administration is yet to fill the role, along with three of the seven other seats on the board. Basel talks were put on hold during this period.
But a briefing note from the...