An agreement on new global banking rules should wait until the new US administration made its approach clearer, the chairman of European Union finance ministers said yesterday.

Disagreement between the EU and United States has halted for months efforts by the Basel Committee of global financial regulators, which oversees US, European and Japanese banks, to reform rules on capital requirements and loss-absorbing buffers.

A deadline to reach a deal by the end of last year was missed and no new target date has been proposed.

“It is not that we want to delay, but things are changing rapidly,” Finance Minister Edward Scicluna told reporters before a monthly meeting of EU finance ministers in Brussels which will discuss the state of the Basel negotiations. Prof Scicluna said it would be wrong to take a decision when things are unclear. Among the reasons for uncertainty, he cited the new US administration of President Donald Trump, whose intentions on financial rules are unclear.

He urged global regulators to reach an agreement only “once the dust settles”, to avoid being caught up with a wrong deal.

Europe and Japan oppose the reform prepared by the Basel Committee as they feel the review goes too far and increases disproportionately the capital banks must hold against risk.

This would increase costs for European and Japanese banks, favouring their US rivals that have already a set of rules similar to those proposed at Basel, EU officials have warned.

Finance Minister Edward Scicluna (left) with Slovakia’s Finance Minister Peter Kazimir, Luxembourg’s Finance Minister Pierre Gramegna and Italy’s Finance Minister Pier Carlo Padoan during a eurozone finance ministers meeting in Brussels yesterday. Photo: Eric Vidal/Reuters