Basel Committee ordered to address gaps in reform

The Basel Committee on Banking Supervision was told in January by its own oversight board that more work is needed to close the loopholes in Basel II. The board – composed of central bank governors and heads of supervision – highlighted several areas of concern. First, it asked that the Committee produce a practical proposal for a provisioning approach based on expected credit losses rather than incurred losses by March 2010. Although guiding principles have already been issued to