Meanwhile, in Europe urgent last-minute talks are taking place to iron out the co-called comitology problem before the Capital Requirements Directive (CRD), the law giving effect to Basel II in the European Union, goes before the European Parliament for approval next week. Some observers think the parliamentary vote might be held over until October if achieving a worthwhile solution were to take longer than the next couple of days.
And Hong Kong regulators have warned that meeting the legislative timetable for bringing the complex, risk-focused Basel II capital adequacy rules into effect in Chinaâs special administrative region will require a substantial commitment of resources from supervisors, government and the banking industry.
Early in October US banking regulators are expected to tell their fellow top supervisors from Canada, Europe and Japan on the Basel Committee on Banking Supervision, the architect of Basel II, what theyâve found from their further study of some worrying results of a test of the Basel II requirements on US banks. The Committee, which in effect regulates international banking, is holding a regular quarterly meeting on October 3 and 4 in Basel, Switzerland.