WROCLAW, Poland (MNI) – Jean-Claude Trichet, president of the
European Central Bank, on Thursday called for national governments to
“stay ahead of the curve” by quickly implementing regulatory and
structural changes agreed to by EU leaders.
In a speech to a financial conference here, Trichet said “what has
been decided has to be implemented strictly, comprehensively, and fully.
As the continuous challenges demonstrate clearly, we are not back to
‘business as usual’ as some thought some months ago.”
Trichet, in a speech largely dedicated to regulatory matters,
called for the quick implementation of the Basel III capital adequacy
rules; new measures to require “systemically important financial
institutions” or SIFIs, to add to their capital; and for new efforts to
control unregulated financial activities in the “shadow banking system.”
“In a crisis period where confidence is of the essence, it would be
extremely damaging if the authorities were to hesitate, demonstrate an
absence of resolve and of the fortitude that is required by the
circumstances,” Trichet said. “I see resistance of some in the financial
sector against Basel III. I see similar messages on the SIFIs. For me,
it is crystal clear: what has been decided is decided.”
Trichet also reiterated his call for national governments to adopt
the sound fiscal policies and structural economic reforms that will
restore confidence in Europe.
Referring to the ECB’s coordinated move Thursday with the Federal
Reserve, the Bank of Japan and other central banks to inject dollars
into the global economy, Trichet said central banks would also work
together to reinforce confidence.
“The globally co-ordinated decision we published this afternoon on
US dollar liquidity providing operations is a clear illustration of our
very close cooperation at the global level,” Trichet said.
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