FRANKFURT (MNI)- Eurozone tensions are keeping policy makers on
high alert, European Central Bank Governing Council member Axel Weber
said Thursday.
“The most recent events in the Eurozone show that it is too early
to say the financial crisis has ended. We are thus facing the challenge
of continuing to monitor financial market and banking system
developments with particular alertness,” Weber said.
At the same time, policy makers should not neglect the “equalling
pressing reform of the financial system,” Weber said.
Speaking at the Bundesbank in Frankfurt and after the German
government acted unilaterally to partially ban naked short-selling,
Weber emphasized the importance of close international cooperation.
Only through close coordination can “distortion of competition due
to differences in international regulation or even regulatory gaps
leading to new stability risks, be avoided,” Weber said.
The head of the Bundesbank reiterated his call for a “restructuring
and liquidation mechanism” allowing authorities to quickly save or
shut-down institutions and thereby effectively fight systemic risks.
Weber also demanded further reform outside the banking system such
as the introduction of central counterparties in OTC trade or more
transparency in rating agencies.
–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com
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