Central bank governors and regulators from more than 30 countries were expected to meet this weekend to approve a new reform package. One major part of these measures would have been reinforcing the level of capital lenders would have to set aside against loans and other assets. But the Basel Committee working on the reform said on Tuesday that more work needs to be done before the package could be submitted for approvals to the Group of Central Governors and Heads of Supervision (GHOS).
"This Basel postponement is very interesting," Gildas Surry, Senior Analyst at Axiom Alternative Investments told CNBC Thursday.
"People have been focusing on the quantum of capital requirements, capital regulation but essentially it comes down to the momentum and the time it takes for banks to adapt
"We have been moving from an environment where banks have been front-loading the new capital requirements up until 2016. Now, with the Basel III requirements postponed, there is more time to phase in so the banks will be given more time to implement those last batches of new capital."
The Basel III reforms are a comprehensive set of guidelines for banks to improve the regulation and risk management within the banking sector in order to avert a financial crisis. The guidelines require banks to hold a minimum Common Equity Tier 1 (CET1) ratio of 4.5 percent at all times. However, a new set of reforms that were due to be signed this weekend aimed to make it more challenging for banks to avoid these capital requirement levels.
While no time frame was provided for the next meeting, an official statement from the Bank of International Standards said the "Committee is expected to complete this work in the near future."