Financial Regulatory Forum

G20 toughens bank capital standards-source

September 5, 2009

Lighting engineers set up a platform ahead of the G20 Finance Ministers meeting in London September 4, 2009. The G20 will promise this weekend to keep economic support packages in place until recovery is certain and seek to reassure financial markets they have credible plans to withdraw the stimulus when appropriate.     REUTERS/Kevin Coombs     (BRITAIN BUSINESS POLITICS)   LONDON, Sept 5 (Reuters) – Group of 20 finance chiefs agreed on Saturday to back a U.S. plan for banks to hold more and higher quality capital, resolving differences over which set of rules to pursue going forward, a G20 source told Reuters.  (more…)

China says may change draft on capital restrictions

September 5, 2009

CHINA   SHANGHAI, Sept 5 (Reuters) – China’s banking regulator may change draft rules it has sent to institutions seeking feedback on changes to banks’ capital restrictions, said an official from the China Banking Regulatory Commission (CBRC) on Saturday. (more…)

Europe split over U.S. bank capital plans

September 5, 2009

BRITAIN/   By Anna Willard and Huw Jones
   LONDON, Sept 4 (Reuters) – Continental European officials defended the globally-agreed Basel II capital rules for banks on Friday despite a U.S. call for its effective replacement with a tougher new regime within three years. (more…)

Lagarde says France could legislate on bonuses

September 5, 2009

G20/     LONDON, Sept 4 (Reuters) – France would be prepared to turn its recently proposed new rules on bonuses into legislation, Economy Minister Christine Lagarde said on Friday. (more…)

COLUMN-Brown jumps on bank bonus bandwagon

September 4, 2009

BRITAIN-JOBS/   By Paul Taylor
   PARIS, Sept 3 (Reuters) – By jumping on the Franco-German bandwagon to curb bankers’ bonuses, British Prime Minister Gordon Brown is playing a political game.
   Many regulators don’t believe that regulating pay will make the financial system more stable. Rather, as Adair Turner, the chairman of Britain’s FSA has observed, the problem lies in the excessive profitability of banks — a function of regulatory arbitrage and inadequate competition. (more…)

US Treasury proposes int’l capital accord for banks

September 4, 2009

   WASHINGTON, Sept 3 (Reuters) – The U.S. Treasury Department on Thursday proposed tough international standards on capital and liquidity at banks, saying new rules are needed to reduce the risk of another global financial crisis.

China tells some banks to halt new business-report

September 3, 2009

drc    BEIJING, Sept 3 (Reuters) – China’s banking regulator is refusing to allow banks with a capital adequacy ratio below 9 percent to start new lines of business or open new branches, a government researcher said in remarks published on Thursday.

UK FSA chief wants banks to draft “living will”-FT

September 3, 2009

BANKS-REGULATION/   LONDON, Sept 3 (Reuters) – UK financial regulator Chairman Lord Adair Turner backed plans to make systemically important banks draw up “living wills” or wind-down plans in case they fail, the FT reported on Thursday.

U.K. banks said to reject applicants over fears of regulator disapproval

September 1, 2009

By Kirstin Ridley
LONDON, Sept 1 (Reuters) – Britain’s leading banks are dropping around 9 percent of applicants for top management positions for fear the regulator will reject them and publicly damage reputations, a law firm said on Tuesday.

U.S. FDIC will keep new banks on short leash

August 28, 2009

WASHINGTON, Aug 28 (Reuters) – U.S. bank regulators said on Friday that they are extending the amount of time they keep new banks under strict supervision, saying recent bank failures have indicated that new institutions pose an elevated risk to the insurance fund that safeguards bank deposits.