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The rules, known as the 'fundamental review of the trading book'
(FRTB), were drawn up last year by the Basel Committee on
Banking Supervision. They form part of a decade-long
international effort to prevent a repeat of the 2008-2009 global
financial crisis.
Last week, the U.S. Treasury published a proposal in which it
called for a delay to the FRTB, as part of President Donald
Trump's broader campaign to roll back many post-crisis reforms.
Reuters reported that the Treasury proposal would likely make
regulators in Asia rethink their position on the implementation
time frame, amid fears their banks may be put at a disadvantage
if they pushed ahead while other countries held back.
On Friday, the Hong Kong Monetary Authority (HKMA) said in a
circular to banks in the financial hub that it did not expect to
implement FRTB until January 2020.
The regulator said "a number of practical implementation
questions have arisen given the high complexity of the new
standards" including as to the "fundamental relevance" of the
proposed rules.
The BCBS, which does not have the power to force member
countries to implement the rules, had agreed national
governments would implement them in January 2019.
The rules aim to create a capital buffer to insulate banks from
losses arising from their trading books but have been criticized
by market participants as too complicated to implement in the
agreed time frame.
(Reporting by Michelle Price; Editing by Christopher Cushing)
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