Loosen mark-to-market rules, urges Basel

The Basel Committee on Banking Supervision has warned supervisors to improve their supervision of banks' risk models, but has also echoed calls for a relaxation in mark-to-market accounting rules. In a recent consultation paper, the committee warned supervisors to ensure that valuations were checked by a separate unit within the bank, rather than by the unit responsible for trading the positions. But, it added, regulators should also look more closely at relaxing strict mark-to-market rules