01 October 2008

EBF calls for urgent co-ordinated supervisory approach

The recent and swift crisis management resolutions taken by three Members States when a large cross-border financial group came under severe pressure is an encouraging demonstration that decisive intervention is possible, EBF says.

In a statement on the recent financial crisis, the EBF welcomes the supervisors' recent intervention in the area of short selling and calls for a co-ordinated supervisory approach. The recent and swift crisis management resolutions taken by three Members States when a large cross-border financial group came under severe pressure, is an encouraging demonstration that decisive intervention is possible, FBE says.

 

EBF is now drawing concrete conclusions on valuation-related issues that may have contributed to financial difficulties in which some European banks find themselves, FBE continues. The pro-cyclical nature of the fair value measurement of financial assets is notably perceived of worsening the impact of the US sub-prime crisis on European banks.

 

As a matter of priority, the EBF envisages to urge accounting standard-setters to amend the rules on reclassifications, i.e. on transfers from the trading book, which are measured at fair value, to other categories of assets.

 

The full statement is attached below

© EBF