Newsletter Jan 2007: Rash of guidelines on eve of new EU capital regime

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.