Despite the various market- and regulatory-led initiatives there is no room for complacency, Páramo said underlining that interventions of public authorities cannot substitute the need for the market to enhance disclosure.
Despite the rich flora of various market- and regulatory-led initiatives there is no room for complacency, Executive Board Member González-Páramo said in a speech held in London.
He underlined that the interventions of public authorities cannot substitute the need for the market to enhance disclosure providing to a better risk assessment. He also noted that ‘there should be no stretching of timetables for enhancing disclosure, including of off-balance sheet instruments, as this is essential to bring market confidence back’.
‘Significant progress’ has already been achieved regarding the immediate policy priorities, he acknowleged. “Now the focus is increasingly shifting towards effective and congruent implementation”, he said.
In the medium-term assessing the potential procyclical impact of Basel II should be among the primary interests of supervisory authorities and central banks, he noted. “The recent financial market turmoil has confirmed the importance of a smooth and efficient relationship between the central banking and supervisory functions”, González-Páramo said. “Strengthening the arrangements for crisis management, including the involvement of central banks in contingency planning of major financial institutions, is in this respect one of the most important lessons highlighted by the FSF.”
Full speech
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