The Basel Committee has revealed the minimum requirements it wants to see banks use when making provisions for bad debt. The committee's position is laid out in a letter to the International Accounting Standards Board and the U.S. Financial Accounting Standards Board just made public. The committee's input comes as the two standard-setting bodies are struggling to reach convergence on this issue. "While the boards have made significant progress in developing expected loss models, we also remain concerned as to whether the eventual standards will result in the early and timely build-up of sufficient levels of credit allowances," the committee's letter said.