BEIJING, March 29 (Global Risk Regulator) - A lack of cohesion on global monetary reform will be on display this week when the Group of 20 wealthy and developing economies meets in China for a seminar.

European Commission is under pressure on all sides as it struggles to turn new global rules into legislation. Will it diverge from Basel III? By Melvyn Westlake

Joint agency proposal to implement part of the Collins Amendment provokes strong reaction. Meshing Basel I and Basel III hits large banks

Some of the recent developments generated by the crisis and the American regulatory reform agenda

BRUSSELS – Strong disagreement between EU governments prevented any progress by finance ministers in mid-March over legislation to regulate ‘short selling’ in Europe’s equity and sovereign debt markets. Even before ministers met, the latest compromise prepared by the Hungarians, who currently hold the rotating Council presidency of the bloc’s 27 member countries, had been rejected.

CAMBRIDGE, England – Although fixing poor incentives, such as those created by ‘too big to fail’ banks or by perversely designed bonuses for bank staff, are a necessary part of the regulatory response to the financial crisis, they are not sufficient. The policy response also needs to focus on the complex dynamics of the whole financial system, particularly higher equity capital requirements, and macro-prudential policies which respond in a discretionary fashion to the credit cycles and instabilities that could arise even in a system where individual agents’ incentives were always well designed.

BRUSSELS – European regulators want to reduce the complexity of the capital requirement calculations for small- to medium-sized (SME) insurers under the planned Solvency II safety rules in the light of a crucial test of the regime’s framework.

BRUSSELS – Many financial market participants have been surprised, even angered by the proposal in a key European Parliament report to remove an important clause from pending legislation, aimed at strengthening competition among post-trade services providers.

PARIS – A study of the likely macroeconomic impact of the Basel III capital rules, undertaken by economists at the Organisation for Economic Co-operation and Development (OECD), the Paris-based policy think-tank, broadly backs up the controversial conclusions of bank regulators. The OECD analysis suggests an average impact on annual GDP growth in the range of minus 0.05 to minus 0.15 percentage point during a five-year period, on average for the US, Japan and the Euro area.

NEW YORK – More needs to be done to prevent shadow credit intermediation from being a continued source of systemic concern. Recent regulation has helped, but the motivation for shadow banking has likely become even stronger with increases in capital and liquidity requirements on traditional institutions.