Reply #61: US Fed's Bernanke-Basel II rules improve oversight

[UpInArms]

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-18T132725Z_01_WBT005390_RTRIDST_0_ECONOMY-BERNANKE-BANKS-URGENT.XML

WASHINGTON, May 18 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke on Thursday urged bankers to bear with growing pains associated with new global bank capital standards, which he said would improve bank supervision.

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Bernanke said the Basel II bank capital accord would more closely link capital requirements with risk and keep regulators abreast of rapid changes in the financial services industry.

"As we proceed toward the implementation of this framework, success will require that bank regulators, the banking industry, the Congress, and other relevant parties engage in an ongoing and frank dialogue, and that policymakers be open-minded, flexible, and ready to make needed adjustments," Bernanke said in prepared remarks.

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