Voices of discontent were still in evidence as US supervisors explained their latest Basel II decisions to the Senate

Despite transformation,Greek banks still among EU’s riskiest. “Use test” is key to new capital standard, says top supervisor.

BRUSSELS – The 13-nation Basel Committee, which sets solvency standards for banks around the world, does not intend to tackle for many months the issues surrounding the quality of bank capital. Basel Committee chairman Jaime Caruana told GRR in October that the committee had not started work on these issues and they were not on its agenda.

LONDON – Guidelines aimed at making the actions of European supervisors more transparent were published at the beginning of November by the London-based Committee of European Banking Supervisors (CEBS), which provides advice to the EU on technical financial issues. These guidelines are needed because, under the Capital Requirements Directive that is about to become law in the 25-country European bloc, it is not just banks that will have to become more transparent, but their supervisors too.

NEW YORK – Participants in the booming credit derivatives market came a step closer in October to eliminating the back-office logjams that have raised considerable operational risk concerns among regulators. The International Swaps and Derivatives Association (ISDA), announced that over 700 “adherents” have signed up to its Novation Protocol. This protocol will help facilitate the transfer of an existing trade to a third party, a kind of transaction that is widely used by hedge funds.

WASHINGTON – The International Monetary Fund is unable to help countries develop the more technical aspects of the Basel II bank safety rules, such as building and validating risk models, the IMF executive board agreed in late October.

VIENNA – A roadmap paper containing a reasonably detailed plan for completing a common structure and standards for assessing insurer solvency should be circulating by the end of the year, insurance regulators said in October.

BRUSSELS, June 15 – US Treasury Secretary John Snow told European Union lawmakers yesterday the US wants to keep to the agreed timetables for introducing the international Basel II bank safety rules, Reuters news agency reports.

WASHINGTON, June 10 – US banking regulators still hope to issue in the autumn their plans for implementing the international Basel II bank safety rules, a US Federal Reserve spokesman said today.

Bies reiterates US Basel II stance; EU ‘No’ vote impact on Basel II could be seen next week; Australia sees capital definition problems; Fair value option on target for mid-June; EU reinsurance law