Walnut considers "essential to increase the strength of the banking system"
Tuesday, June 22nd, 2010"It is imperative to increase the soundness of the banking system, all G20 countries are convinced", said this morning Christian Noyer, governor of the Bank France, during an interview with The Tribune.
On the slopes of the reforms currently being tested, he explained that "the general philosophy of the reform is to require banks to allocate a larger share of their findings to their own funds, without affecting the distribution of credit, adding that "priority is to complete our work at the end of the year."
However, the governor of the Bank of France was cautious about the actual creation of a tax credit, a project supported by the Franco-German: "This proposed tax is the responsibility of States," he said business daily.For now, the new rules adopted in the context of Basel III are not yet determined, although a number of proposals have been put on the table. "All the rules laid down will not necessarily accepted," said Christian Noyer The Tribune, adding that 'the dosage and timing are not yet established'. One thing is sure: the economic impact on banks will be taken into account.
Credit rating agencies under scrutiny
Furthermore, Christian Noyer considered "incomprehensible" the recent decision of Moody's notes the degrade of Greece speculative grade. "The rating agencies should be alert indicators in judging upstream on the strengths and weaknesses of borrowers.Cause abrupt movements of the market once the problems identified and solutions have been made, is cons-productive, "he has told La Tribune. Before concluding:" Moreover, in the case of Greece we rely more on analysis of the IMF – more aware of the situation – as those of rating agencies.
See also: The financial regulation for Dummies