PARIS (MNI) – Proposed new liquidity ratios for banks were decided
somewhat precipitously and deserve “a more in-depth examination,”
European Central Bank Governing Council member Christian Noyer said
Friday.
Presenting his New Year’s greeting to the banking community and the
press, the Bank of France governor said revisiting the issue was
important for financial stability.
“I believe that some significant modifications are necessary and
that they should be envisioned without delay in order to lift as soon as
possible an uncertainty that is damaging to good management and creates
instability,” Noyer said.
Noyer also urged banks to meet the new capital ratio objectives of
Basel III and said that Europe must also ensure that its partners are
implementing the Basel accords at the same time and “without ambiguity.”
“I ask you to work without delay to reinforce as quickly as
possible the level and quality of your capital in order to be prepared
for the deadlines established in Basel III,” he said.
The reinforcement of bank capital was necessary in order to boost
the robustness of the financial system and to shield public finances
from the cost of future crises, because “from now on, it will be
impossible in the future to solicit taxpayers to shoulder the burden of
potential difficulties as was the case in certain countries during the
crisis,” he said.
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