Japan, China, S. Korea to form body on banks -paper

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TOKYO Oct 22 (Reuters) - Japan, China and South Korea will set up a new organisation to cooperate on bank regulation as part of measures to stabilise Asian financial markets, Japan's Yomiuri newspaper reported on Wednesday.

Under the new group, representatives from the three nations' finance ministries, bank regulators and central banks will meet regularly to examine steps to boost monitoring of financial institutions and to enhance their disclosure, the paper said, without citing sources.

Members of the Association of South East Asian Nations (ASEAN) will be urged to participate in the organisation, which will aim to be an Asian version of the Financial Stability Forum, a body consisting of financial regulators from the Group of Seven industrialised nations, the paper said. (Reporting by Leika Kihara; Editing by Edwina Gibbs)