ECB’s Noyer: Restoring Bank Credibility Key For Eurozone

PARIS (MNI) – Restoring the credibility of European banks is a “key
chapter” in constructing a robust Eurozone, European Central Bank
Governing Council member Christian Noyer said Tuesday.

The governor of the Bank of France said the European interbank
market remains “fragmented” despite the huge amount of liquidity
supplied by the ECB.

“Banks remain mistrustful” of each other, Noyer said, noting that
most banks have built up substantial liquidity cushions so as to have
little need at the moment for active interbank borrowing and lending
operations.

Noyer also reiterated his recent call for a single banking
supervisor in Europe and he said he favored a system with regional
central banks and a powerful central supervisor, as in the United
States.

In a recent newspaper op-ed piece, Noyer called for the ECB to be
the central regulator of European banks as part of a European banking
union.

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–Paris newsroom, +33142715540; jduffy@marketnews.com

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