FRANKFURT (MNI) – The impact of rating agencies on financial
stability, as well as whether we have the “optimal configuration” of
them, are open questions that need to be addressed at the global level,
European Central Bank President Jean-Claude Trichet said on Thursday.
“I would say that, in this domain as in many others, the more you
have competition, perhaps the better,” Trichet said during his press
conference following the ECB’s decision to keep its main refinancing
rate unchanged at 1.00%. “But I will not pronounce [on this] myself,” he
quickly added.
Trichet avoided committing either himself or the ECB Governing
Council to a precise position regarding rating agencies, or whether
Europe should have its own. However, he did concede that this was
something that required examination “not only in the European context,
but on a global level”.
“The issue of whether or not we have pro-cyclical factors that are
adverse in terms of financial stability, the behaviour of rating
agencies, whether we have conflicts of interest and so forth is part of
the discussion in the G20 [and] the Financial Stability Board,” the ECB
chief said. However, he added that it remained “a work in progress.”
“This is one of the areas where we can see elements of
pro-cyclicality that have to be fully elucidated,” Trichet added. “We
are working ourselves at this stage, in Europe and at the global level
on what are the best avenues.”
–Frankfurt bureau tel.: +49-69 720142. Email: dbarwick@marketnews.com
[TOPICS: M$$CR$,MGX$$$,MT$$$$,M$$EC$,M$X$$$,M$I$$$]
