BRUSSELS (MNI) – Criticism that new capital and liquidity rules for
banks are being watered down is not valid, and policy-makers are
determined to make the banking system more resilient, European Central
Bank President Jean-Claude Trichet said on Thursday.
International banking rules on liquidity and capital are being
overhauled after the economic crisis. One international set of rules,
Basel 3, will stipulate what capital and liquidity banks are required to
hold.
But some critics argue those rules are being weakened to assure
that banks are able to finance the real economy.
“I won’t say at all the discussion in Basel watered down the future
rules and regulations,” Trichet told reporters at a press conference in
Frankfurt.
“What has been published in Basel is in full accord with what we
said in the beginning,” he said. “We have to strengthen liquidity
standards, reduce pro-cyclicality.”
“What is important is that in the medium term, we have a financial
system that is resilient,” he said. “We are very determined to make the
system much more resilient.”
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]