FRANKFURT (MNI) – Europe is about halfway through the reforms that
were essential following the crisis, though “much remains to be done,”
European Central Bank President Jean-Claude Trichet said on Wednesday.
In the text of an opening speech to be given at the Frankfurt
Finance Summit, Trichet listed three “main building blocks” of the
ongoing financial reforms in Europe, including banking regulation,
financial market regulation and macroprudential oversight.
“I believe we are now about halfway through the comprehensive
reforms that the crisis has called for,” Trichet said. “We have achieved
a blueprint of more stringent bank regulations that includes more
loss-absorbing capital, better risk coverage and limitations for undue
leverage.”
“But much remains to be done,” the central banker warned. “The most
important aspect is the implementation of these reforms.”
“Moreover, the issue of systemically important financial
institutions requires further reflection, and oversight of the proper
functioning of financial markets in a way that avoids undue volatility,
excessive influence of dominant players and oligopolistic market
structures, while reinforcing transparency, needs to be addressed
resolutely.”
— Frankfurt bureau: +49 69 720 142; email: frankfurt@marketnews.com —
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