The Federal Reserve is considering a delay in the compliance date for the highly anticipated Volcker regulation, giving banks additional time to conform with its provisions, according to people familiar with the matter.
Banks are currently required to comply with the rule – which bans proprietary trading that puts a bank’s own capital at risk – by July 2014.
But regulators are still putting the final touches on the long-delayed proposal, and the final rule will probably not be released until December – giving banks less than a year to make changes to comply with the proposal.
The Fed has the option of delaying the compliance date in one-year increments. It is considering pushing out the timing to July 2015 to allow for a phased-in period of implementation, people familiar with the matter said. If the Fed decides to delay the date, the move will probably be announced next month.