Christian Noyer, governor of the Bank of France has become the first senior central banker in the Group of 20 systemically important countries to publicly dissent from the proposed introduction of a leverage ratio to measure large banks’ capital adequacy. He is “doubtful” that such a ratio would help regulators anticipate the formation of asset price bubbles, he said at the beginning of September in a speech at the Argentinean central bank in Buenos Aires.

The controversial centrepiece of the new regime is a presumption that banks and investment firms in Britain must be self-sufficient in their liquidity requirements. FSA liquidity policy is based on two “high-level principles,” the regulator says. Firstly, that all its regulated entities – banks, building societies, and investment firms, including foreign subsidiaries and branches in Britain – must have adequate liquidity; and, secondly, they must not depend on other parts of their group to survive liquidity stresses, unless permitted to do so by the FSA.

Regulators and policy-makers want changes in the way banks provide for loan losses, but the industry is unenthusiastic Bankers around the world aren’t keen on accounting standard-setters’ ideas for improving the way banks make provisions for loan losses, improvements demanded by world leaders and banking regulators in the wake of the global financial crisis.

LONDON, September 6 (Global Risk Regulator) – Finance ministers of the Group of Twenty (G20) leading economies agreed on strengthening the financial system at their two-day London meeting which ended on Saturday, but their final communiqué papered over differences on key issues.

WASHINGTON, September 3 (Global Risk Regulator) – America’s financial market regulators must work to close the gaps between them, including over off-market or over-the-counter (OTC) derivatives, Commodity Futures Trading Commission (CFTC) chairman Gary Gensler said today.

Congressional hearings expose depth of disagreements over the Obama reform package; G20 cooperation could be at risk By Nick Paraskeva

New global body has key role to monitor systemic risks, regulatory compliance. Recovery depends on sustaining reforms, chief tells GRR By Melvyn Westlake

Contentious Basel II debate could be reopened by a report from a Congressional watchdog. Fresh review is critical, it says

Proposals on both sides of Atlantic to regulate derivative OTC markets may mask troubling differences of approach

Geneva think-tank highlights problems of putting controls on pay, just as bankers’ bonuses are back in the news By David Keefe