BRUSSELS – The European Commission is significantly widening its review of the existing rules for banks’ large exposures and extending the date for the review’s completion, which had previously been set for the end of 2007. This emerges from a new Commission call for technical advice from the Committee of European Banking Supervisors (CEBS), the London-based body that consults with the banking industry, and provides advice to Brussels on technical legislative and regulatory matters in this field.

WASHINGTON – After almost three years of discussion, five US regulatory agencies have issued their final guidance for firms involved in complex structured financial transactions (CSFTs). The final guidance, referred to by the agencies as a “final statement,” is substantially similar to the revised proposed guidance that they issued last May. It takes a risk- and principles-based approach to addressing the risks that CSFTs may pose to banks and other financial institutions, and focuses on those types of transaction that may present elevated levels of legal or reputational risk to those involved in them.

LONDON – A flurry of guidelines for banks implementing the Capital Requirements Directive were issued in December, just ahead of the January 2007 start-date for stage one of the new risk-based capital standard’s introduction across the 27 EU countries. The guidelines, issued by the Committee of European Banking Supervisors, CEBS, the London-based body that promotes convergent supervisory practices in the EU bloc, cover the management of banks’ concentration risks, stress testing of their capital adequacy, outsourcing of bank functions, and financial reporting.

HONG KONG – Banks in HK must lower their expectations in respect of the advanced internal ratings-based approach to assessing credit risk under the Basel II bank safety rules, a top Hong Kong regulator said in December.

WASHINGTON – Most US banks adopting the so-called Basel IA capital rules should see a significant reduction in regulatory capital, says a leading risk management consultant.

BRUSSELS - CEA, the trade body for Europe’s insurance and reinsurance industry, has appointed Michaela Koller as director general, or head of the federation’s secretariat.

WASHINGTON – Sara Kelsey, deputy superintendent and general counsel of the New York State Banking Department, is the new general counsel of the Federal Deposit Insurance Corporation (FDIC), the agency that insures customer deposits at US banks.

BRUSSELS – Financial conglomerates, ‘own funds’, and following up on work from 2006 will be priority issues in 2007 for the joint efforts of Europe’s banking, securities and insurance regulators.

CHICAGO, Illinois – The banking supervisory authority of the US Federal Reserve system has significant benefits in helping the US central bank to carry out its responsibilities for financial stability, Fed Board of Governors chairman Ben Bernanke said in early January.

Open discussion will help the European Union find the most efficient way to regulate third-country auditors, Europe’s top financial services regulator said in January as the European Commission issued its planned consultation paper on the regulation of non-EU audit firms.