December 19, 2012 - Banks across Europe will not have to comply with the incoming Basel III regulations from the beginning of 2013, it has emerged.

These guidelines - which will require financiers to hold higher levels of capital on their balance sheets - had been scheduled to be implemented globally from 1 January next year, but it was announced recently that US lenders are to postpone this deadline.

This led to European banks lobbying for a delay on this side of the Atlantic on the basis this move would give their American counterparts a competitive advantage.

And, according to Reuters, Europe will now definitely fail to meet the Basel III schedule after talks between European Union officials were cancelled yesterday (18 December).

Last week, a senior policymaker indicated the bloc was on the "cusp" of reaching an agreement regarding Basel III and yesterday's negotiations were intended to put the finishing touches to the deal.

However, these talks will now not take place until the new year.