Exchange of views on the ECB's annual report 2007, with the participation of Lucas Papademos, Vice-President of the European Central Bank
End production: 21/04/2008 First transmission: 21/04/2008
Lucas Papademos, Vice-President of the European Central Bank, had an exchange of views on the ECB's annual report for 2007 with the Members of the EP in Strasbourg on 21 April 2008.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the European Parliament in Strasbourg
||Lucas Papademos, Vice-President of the European Central Bank, (in ENGLISH) saying that at the current juncture, the outlook for financial stability in the Euro area continues to be characterised by considerable uncertainty; it is also unclear what the impact will be on the intermediation of credit to the household and corporate sectors; moreover, further tensions in structured credit markets cannot be excluded in view of the ongoing weakness in the US housing market; and there is also a risk of adverse developments in the credit cycle;
looking ahead, the ongoing adjustment of global financial markets is likely to last for some time; its interaction with the world economy would prove more wide-ranging and the shock-absorption capacity of the Euro area financial system could be further tested;
improving transparency and enhancing valuation practices should be a top priority;
the financial industry retains a primary responsibility and has strong incentives to promote the smooth functioning of the financial system; it does have to demonstrate its capacity to implement actions regarding transparency, valuation and risk management practices so as to finally turn the page on this difficult episode
||Cutaways (6 shots)