Will the latest guidance from the Basel regulators on treating bank loan losses cut the squabbles between them and the accounting rule-makers? David Keefe reports

Banks with large stocks of general reserves are now in a dilemma over what to do with them if they are reporting under the new IFRS accounting rules, says credit rating agency FitchRatings.

LONDON – There is no case for the regulation of price transparency in Europe’s bond markets today, say five fixed income trade associations in a joint document aimed at fending off any moves to bring their market within the kind of transparency regime that is about to be applied to equity trading under new EU legislation. The current, competitive bond market structure already provides investors with appropriate levels of price transparency across the various market segments, the trade associations argue.

BASEL, Switzerland - Global banking regulators suggest that banks using advanced approaches to measuring operational risk, and wanting to base the capital charge on unexpected losses, must show that expected losses are highly predictable and reasonably stable.

LONDON – A number of trade bodies in the securities markets are joining forces in an attempt to achieve a consensual industry approach to the implementation of one of the EU’s most sweeping, and potentially costly, financial directives – the Market in Financial Instruments Directive (MiFID).

CHENNAI, India – Indian banks and their regulators face a daunting task in building up capacity to implement the international Basel II bank safety rules, especially in respect of the advanced approaches to measuring risk, one of the country’s top central bankers said in November.

BRUSSELS – Number one priority for the European Commission in the financial field is to consolidate the progress made in integrating markets and ensure sound implementation and enforcement of existing rules. This is the message of the Commission’s White Paper entitled Financial Services Policy 2005-2010, published on December 5.

WASHINGTON – Ben Bernanke, now almost certain to be the next chairman of the US Federal Reserve Board, told critical US lawmakers in mid-November that “Basel II or something like it appears necessary” in today’s banking world.

GENEVA, Switzerland – Guidance issued by global banking regulators on home country-host country information sharing should help to ease problems caused by different implementation timetables for the Basel II bank capital rules, a top US central banker suggested in early December.

BUCHAREST – A more gradual approach to the adoption of the Basel II bank safety rules may be necessary for Albania and countries in South East Europe, Albanian central bank governor Ardian Fullani said in November.