HONG KONG – Boldness and realism in a finely balanced blend is needed to meet the challenges of developing a macroprudential approach to financial supervision, according to a top Bank for International Settlements (BIS) official.

BRUSSELS - Banks escaped a tax on financial transactions after the UK and other European Union countries undermined plans to use the levy to help repair the damage to national budgets caused by the banking crisis, news agencies reported as GRR went to press.

BASEL – Regulators are proposing new rules to ensure that holders of subordinated bank debt suffer losses before taxpayers when banks are facing insolvency. A consultative paper,* issued in mid August by the Basel Committee, the global standard-setter, proposes a new requirement that all non-common equity instruments that are eligible as Tier 1 and Tier 2 regulatory capital at internationally-active banks should contain contractual terms allowing them to be written off or converted to common shares if a trigger event occurs.

LONDON – Regulators must increase their focus on the valuation of banks’ traded positions and there’s a need for a specific assessment of valuation uncertainty, according to Britain’s financial watchdog.

GENEVA – Insurers want to play a more active role in the global financial debate. But some very relevant non-insurance actors such as the Financial Stability Board (FSB) and many central banks seem to think that the new financial stability framework does not need insurance, according to a top official of a leading insurance industry think tank.

Jens Tolckmitt, head of the Association of German Pfandbrief Banks contends that the Basel Committtee's proposed leverage ratio will damage a very safe, specialised form of banking and will actually lead to higher credit risk on bank books

Harald Benink and Clas Wihlborg propose a 15% leverage ratio. They argue that the burden on banks of such a ratio can be reduced by the greater use of contingent capital

“Extensive and significant” changes are proposed to Europe’s equity, bond and derivative markets. Aim is to boost transparencyBy Melvyn Westlake

Europe softens stance as America signals its desire for early recognition. But is it enough to overcome all the hurdles?

Crucial QIS5 test of EU’s proposed framework for bolstering insurer safety began in August; industry worries persist