BRUSSELS – Eight priorities for action are set out in a new report aimed at creating an efficient framework for the activities of the European banking sector in coming years. They include the removal of barriers to cross-border consolidation; achieving a level playing-field among different market participants; making consolidated prudential supervision work; and reforming the VAT (sales tax) treatment of financial services.

PHILADELPHIA, Pennsylvania – Virtually 60% percent of banks polled this autumn in a survey – 58.8% to be precise – described as only average the overall quality of the data they use to support their credit risk management, with significant work needed in some areas.

FRANKFURT-am-Main, Germany – Charlie McCreevy, Europe’s top financial services regulator, said in November it’s up to US insurance regulators to resolve the row that’s broken out over America’s regulation of reinsurance.

MUMBAI – Principles-based regulation is simpler to advocate than to put into effect, according to a senior Indian central banker. Reserve Bank of India deputy governor Shri V Leeladhar said the central bank is looking at the feasibility of adopting a principles-based, as opposed to a rules-based, approach to banking regulation.

LONDON – Former Bank of England director David Walker denied to UK parliamentarians in December that the voluntary code he drew up for the burgeoning private equity industry constituted a bare minimum of regulation for the controversial activity.

Europe’s radical policy on insurance regulation is unlikely to be adopted as a global standard, but countries worldwide see this risk-based approach as a template to protect consumers

As banks prepare to adopt advanced risk measurement option, arguments between supervisors rage over model reliability. By David Keefe

European Commission is aiming to amend the Capital Adequacy Directive in six “targeted” areas. No intention to revise basics By Melvyn Westlake

In a radically different approach to the rules on eligible bank capital now being hammered out by the Committee of European Banking Supervisors (CEBS), the Financial Services Authority, Britain’s regulator, is proposing that some of the sub-limits on regulatory capital instruments be eliminated.

A review of the EU’s regulatory and supervisory framework is under way. But a deep philosophical divide is opening up By Melvyn Westlake