Regulatory arbitrage across countries and across continents would be a recipe for catastrophes, Trichet underlined and called for combating financial protectionism which could delay recovery and dampen the future growth of the global economy.
ECB President Jean-Claude Trichet called on policymakers to ensure a level global playing field in financial services to prevent regulatory arbitrage and avoid future catastrophes.
“It is essential that all economies of the world apply the same rules, respect the same principles as regards financial regulation, and display the results of their corporate businesses along the same accounting rules”, he said.
“Regulatory arbitrage across countries and across continents would be a recipe for catastrophes”, Trichet underlined and called for combating financial protectionism which could delay recovery and dampen the future growth of the global economy.
“We must maintain the appropriate balance between the need to take immediate action commensurate with the gravity of today’s situation, and the equally undeniable obligation to return to a path that is sustainable in the medium term”, Trichet said pointing towards the regulatory measures to be taken.
Full speech
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