PLEDGE TO FINALISE BASEL III REFORMS

But G-20 finance chiefs stop short of making progress on certain proposals that have led to Europe-US standoff

have been waiting months for President Donald Trump to install new faces at the four institutions that represent the US on the Basel Committee, led by the Federal Reserve.

Germany wants to ink a deal on new measures to stop banks gaming capital rules during its presidency of the G-20, whose focal point is a summit in July.

But no breakthrough is possible until the US negotiating team is formed.

Germany increased the odds of a deal this week, when regulators said they were ready to accept an output floor — a blunt check on banks’ use of their own statistical models to measure asset risk that could drive up their capital requirements.

That was an important shift in Germany’s stance. Back in November, Bundesbank executive board member Andreas Dombret said Germany would walk away from the talks unless its key demands were met.

His list included preventing the introduction of the output floor in the final Basel package.

Going into the talks here, Financial Stability Board chairman Mark Carney warned of balkanisation in global financial markets that could ensue if G-20 nations gave in to “reform fatigue”.