The EU has been warned not to delay the implementation of the next phase of global banking rules. The draft plan shows that Brussels proposes to extend the internationally agreed deadline by two years.

Carolyn Rogers, secretary-general of the Basel Committee on Banking Supervision, said the new rules were the "very important last chapter" of capital regulatory reform known as the Basel III (Basel III). She said these measures must be implemented "continuously and as soon as possible".

The European Commission will unveil plans to implement the last part of the Basel reform plan on Wednesday. Under a global agreement, the reforms will take effect in 2023, but the European Commission proposes to postpone the effective date to 2025, according to a draft plan.

The Brussels proposal also includes phased implementation of measures, such as risk-reducing mortgages, so that they will not fully take effect until 2032.

The measures to be implemented will set new standards for how international banks measure their capital in order to establish consistency among cross-border banks. This is the last part of a package of measures aimed at making banks more resilient in the wake of the 2008 global financial crisis.

The delay will be welcomed by banks in countries such as France, but could also clash with global regulators. France will be hit hardest by having to hold more capital to comply with the latest rules.

Mr Rogers warned that EU delays could prompt other jurisdictions to delay implementation so as not to put domestic banks at a disadvantage.

She said the globally agreed timetable was "absolutely important" because it had been extended for a year to deal with the impact of the epidemic.

"it's always a challenge when jurisdictions want to deviate from global standards," says Mr Rogers. " Rogers will join the Bank of Canada as senior deputy governor in December. "when you know that [these standards] exist to create a level playing field, it is difficult for a single deviation to be just a single deviation."

The EU delay is also likely to disappoint European regulators. Andrea Enria, the ECB's regulatory president, told members of the European Parliament this month: "We believe that it is essential to fully, timely and faithfully implement the excellent Basel III standards."

These plans still need to be approved by parliament and EU ministers before they can take effect.

According to the European Commission's draft proposal, the European Banking Authority, which sets EU banking rules, estimates that 10 large banks will have to raise less than 27 billion euros of capital to meet their new priority requirements.

The other 89 banks in the EBA sample were not short of capital. The 99 banks have regulatory capital of 1.44 trillion euros.

Enria told members of the European Parliament that the ECB's analysis showed that "short-term costs are negligible compared to the long-term benefits of making the financial system more resilient".

Regulators in Basel are closely watching the European package to see if it will comply with an agreement to set a "floor" on the amount of capital banks need to set aside for certain types of assets. This will limit the ability of banks to use their own internal models to meet lower capital requirements.

The European Commission did not comment directly on the implementation timetable. However, it said the EU proposal "will meet our international commitment to implement the Basel III standards, but will be adjusted to reflect the specific conditions of the EU economy and banking sector."

The draft proposal also tightens regulation of non-EU bank branches operating in the region, including a mandatory review of branch networks with assets of more than 30 billion euros. To determine whether these businesses should operate as subsidiaries-a measure that would force them to hold more capital and liquidity.