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Basel’s Caruana says US and EU redoubling efforts over timetable problem

BRUSSELS, October 31 (Global Risk Regulator) – European and US banking regulators will redouble their collaboration in the light of the timetable differences over the implementation of the international Basel II bank safety rules, the world’s top banking supervisor said at the end of last week.

A leading European banker, speaking at the same venue, warned that the differences pose many so-called home-host regulatory issues for European Union banks with US operations and US banks with EU operations.

Basel Committee on Banking Supervision chairman Jaime Caruana said the timetable differences, which mean that big European banks are likely to adopt the complex Basel II rules at least a year ahead of their US rivals, raise "transitional cross-border issues that will need to be managed through greater collaboration between the European Union and US supervisors".

"But I can assure you that both sides are even more committed to this than before," Caruana told a conference on European banking supervision organised by the European Banking Federation, known as the FBE, which was held in Brussels on Friday.

He said cross-border home country-host country cooperation is the main challenge facing banks and their regulators in achieving "quality implementation" of the risk-focused Basel II capital adequacy