Bankers worried EU may not meet 2004 deadline

European bankers fear it will be touch-and-go whether the European Union will meet its 2004 deadline for introducing new capital adequacy rules for EU banks and investment firms.

And some are worried that even if the deadline is met, the legislation won’t be flexible enough to deal with the evolution of the operational risk capital charge. A charge for op risk will for the first time form part of the capital banks will have to set aside as a guard against the risks of the banking business.

If the deadline is missed because of the widely acknowledged slowness and inflexibility of EU lawmaking, it could put European banks at a competitive disadvantage in relation to