The Group of 20 major economies requested the Financial Accounting Standards Board and the International Accounting Standards Board to come to an agreement on convergence for the rules governing what reserves banks set aside to cover the risk of loan defaults. FASB wants banks to set aside funds to cover bad loans on issue, while IASB is looking only for partial coverage at the outset, to be increased if and when the risk increases. The regulators met July 23, but came no closer to a compromise.

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