2/4/2010

More work is needed on two crucial areas of bank regulation, the Basel Committee on Banking Supervision was told by its supervisory board, made up of the governors of central banks and high-ranking bank supervisors. The committee was instructed to come up with proposals for moving from incurred-loss model for measuring loan losses to a provisioning approach based on expected credit losses. The supervisory board also instructed the committee to get back to work on ways to address the potential failure of banks that are so large that their collapse could bring down a nation's entire financial system.

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