The European Union on Wednesday moved towards a new regulatory regime for all banks operating in the 25 member states, when the European parliament voted to introduce the Basel II capital requirement standards and to change the way international banks are supervised.

The vote by the Strasbourg-based chamber means the new regime which has the broad support of banks, companies and supervisors will take effect across the EU from January 2007. European banking officials said they hoped the vote would encourage the US to follow suit, and ensure that US banks applied the regime as foreseen in the Basel accord.