Newsletter Jul/Aug 2009: Regulation Digest A selected summary of recent papers, speeches, and international regulatory developments.

Economic and Financial Affairs Council (ECOFIN) Pro-cyclicality EU finance ministers meeting in ECOFIN on July 7, backed the report of the Working Group on Pro-cyclicality. This centres on developing a macro- prudential approach, including incorporating automatic stabilisers into the regulation. Ministers agreed on the need to monitor system-wide risks and supported the introduction of forward looking provisioning. They asked the European Commission to come forward with proposals to pursue these objectives