BERNE - Switzerland is the first member-country of the Basel Committee of global banking regulators to detail how it will protect its banks through the use of a so-called countercyclical capital buffer (CCB), a pre-emptive measure requiring banks to build up capital gradually as imbalances in the credit market develop. Activation of the CCB will become possible from July at the earliest.

LONDON – Leading financial services firms have made major changes in their organisation and approach to risk management following the global financial crisis, but there is still much to be done to change and embed new methodologies and approaches, according to a survey published in June.

BASEL, Switzerland – Only one area of global financial reforms, the creation of effective resolution regimes, remains on a “red alert” for problems after the progress made by regulators since November in implementing the broad regulatory shake-up agreed by world leaders.

NEW YORK – James Kroeker, the US Securities and Exchange Commission’s (SEC’s) chief accountant, will leave the federal stock market regulator in July to enter the private sector, it was learned as GRR went to press.

WASHINGTON – A customised approach should be taken to the regulation of the disparate range of activities referred to as shadow banking, carefully considering each on its own merits to assess whether they could create systemic risks, rather than addressing them collectively. This is the central message of a new report* on the shadow -- or largely unregulated -- sector, issued in mid-June by the Institute of International Finance (IIF), a Washington-based trade association representing the biggest global firms.

Michel Barnier, who as internal market commissioner is the European Union’s top financial regulator, said in early June there is a major risk that necessary amendments to the Solvency II framework directive, which lays down the general principles of the regime, will not be made in time, that is before November 1 2012. The amendments must be adopted by the EU Parliament and Council of EU member states in order for the European Commission, the EU’s executive arm, to issue the so-called level 2 implementing measures that provide the details that will put technical flesh on the bones of the principles.

Obscure aspect of G20 measures is seen as a vital building block. OTC derivatives likely to be starting point

UK central banker Andy Haldane again takes accounting rule-makers to task over fair value, but gets a dusty answer

Long-awaited global report is more in line with US approach than insurers expected; but collecting data will be a challenge

Washington regulators have issued mammoth proposals to adopt the global capital rules. Bankers likely to press for changes to them By Melvyn Westlake