U.S. banks are expected to delay mergers until the end of next year until new capital requirements are clear.

The lengthy regulatory licensing process deters buyers and sellers, according to Timothy Adams, CEO of the Institute of International Finance.

The US implements Basel Committee on Banking Supervision requirements, which took years to finalize after the 2008 financial crisis.

Banks are waiting to fund the capital requirement hike, citing rising interest rates, economic slump, and capital rule uncertainties.