U.K. banks get new compliance rules.

• Author: Swartz, Nikki
• Position: UP FRONT: News, Trends & Analysis - Brief Article

U.K. financial industry regulator the Financial Services Authority (FSA) has announced new rules for banking industry compliance with the credit risk requirements of the Basel II accord. The Basel II Framework sets out the guidelines for adopting more risk-sensitive minimum capital requirements for European banks. It reinforces these requirements by laying out principles for banks to assess the adequacy of their capital and for supervisors to review such assessments to ensure banks have adequate capital to support their risks. The accord also enhances transparency in banks' financial reporting.

The FSA issued its proposals in a paper--"Strengthening Capital Standards"--detailing the key aspects of U.K. implementation of the European Union's Capital Requirements Directive (CRD), which is closely linked to Basel...