US policy over compliance with the new accord is a serious challenge for Europe, warns academic. Rethink needed on EU capital directive. Inflexible regulation feared

BASEL - Risk managers, consultants, bankers, analysts and many others have been spending long hours combing through the third and final Consultative Paper (CP3) on the New Basel Capital Accord, and analysing the changes from previous proposals.

OTTAWA - Canada\'s six largest banks, which account for the overwhelming share of the country\'s bank assets, are \"expected\" by Ottawa regulators to adopt the most sophisticated approach to credit risk measurement under the new Basel capital accord.

LONDON - The Lloyd\'s of London insurance market says it will work with UK supervisors to develop further the new risk-based prudential rules for the market proposed by UK regulators in April.

BRUSSELS - European Commission officials are on target with their plans to publish in early June a paper on the future organisation of work on Solvency II, the new regulatory regime for the European Union\'s insurance industry, regulators said at the beginning of May.

BASEL- Bank of Spain governor Jaime Caruana took over as chairman of the Basel Committee on Banking Supervision on May 1, two months earlier than previously planned.

WASHINGTON - The US has got the structure of its banking regulation about right, although the system offends all aesthetic and logical instincts, according to Comptroller of the Currency John Hawke.

BRUSSELS - It would not be \"socially efficient to impose large capital requirements\" on fund management companies, according to a new study.

SINGAPORE - Singapore regulators issued a consultation paper in April on a proposed law aimed at providing a clear framework for the oversight of financial market payment systems.

Washington DC - There is great concern among regulators in the emerging market countries that the new Basel capital accord will lead to the widespread takeover of their banks by foreign financial institutions.