A senior US Treasury official said on Monday the department had yet to become directly involved with proposed revisions to a global banking regulatory pact, but is watching the process closely.
"Our role has been that of an interested observer, we continue to carefully monitor and analyse developments in the revision process" of the so-called Basel Capital Accord, Treasury Acting Under Secretary for Domestic Finance Brian Roseboro told the Institute for International Bankers.
The accord, also known as Basel II, would replace an existing set of rules governing how internationally active banks set aside emergency capital to protect themselves.
"Treasury recognises the problems associated with Basel I, and that a replacement is needed," he said, adding that to date, the department had left negotiations over a new accord to US banking regulators.
Roseboro also repeated the Bush administration's desire to see a stronger regulator for government-sponsored enterprises Fannie Mae and Freddie Mac.