MADRID, September 22 - Sound accounting and provisioning standards are a key element that must be built into the foundation of the Basel II upgrade of international rules for bank safety, the world\'s top banking regulator said today.

WASHINGTON, September 10 - US Comptroller of the Currency John Hawke, shortly to leave office, is still worried about the possibility that rapidly evolving risk management practices could outpace the Basel II upgrade of international rules for bank safety.

LONDON, September 9 - British financial regulators fear the threatened adoption in Europe of a diluted version of the controversial IAS 39 accounting rule could undermine the effectiveness of risk-based regulation of banks and insurers.

Letter from EU Commission spells out options. Heavy lobbying by German and French banks. A favoured option could upset US By Melvyn Westlake

Lending to some countries could be strangled because new capital rules fail to give enough recognition to risk diversification By David Keefe

Asian and other emerging market countries should choose the parts of Basel II they like and not worry about the rest.

A lack of financial disclosure by hedge funds is viewed with concern. Can they be brought within the regulators\' net? By Melvyn Westlake

Regulators instruct banks on avoiding reputation damage. Concern to eliminate Enron-style complex financial structures. But some fear proposals are too sweeping

LONDON - \"A huge advance\" is the way bankers have hailed the latest consultation paper spelling out how the supervisory review process might work under the European Union\'s proposed capital adequacy directive.

AMSTERDAM - Securities supervisors in Europe and the US are planning to cooperate much more closely to minimise risks of disorderly markets and to bring transatlantic regulatory practices closer into line.