Extracts from the European Systemic Risk Board press conference by Jean-Claude Trichet, Mervyn King and Andrea Enria
Type: Summary of press conference
End production: 22/06/2011 First transmission: 22/06/2011
The General Board of the European Systemic Risk Board (ESRB) met on 22 June 2011 for its second ordinary meeting.
Jean-Claude Trichet, President of the European Central Bank (ECB) and Chair of the ESRB, Mervyn King, Governor of the Bank of England and first Vice-Chair of the ESRB, and Andrea Enria, Chairperson of the European Banking Authority (EBA) and second Vice-Chair of the ESRB, held a joint press conference after the meeting.
The General Board of the ESRB had a thorough review of the systemic risks to which the financial system of the European Union is exposed. It concurred that the most serious threat to financial stability in the EU stems from the interplay between the vulnerabilities of public finances in certain EU Member States and the banking system, with potential contagion effects across the Union and beyond.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Jean-Claude Trichet, President of the European Central Bank (ECB) and Chair of the European Systemic Risk Board (ESRB), Mervyn King, Governor of the Bank of England and first Vice-Chair of the ESRB, and Andrea Enria, Chairperson of the European Banking Authority (EBA) and second Vice-Chair of the ESRB (2 shots)
||Soundbite by Jean-Claude Trichet (in ENGLISH) saying that the ESRB has discussed the macro prudential aspects of the current situation in the EU; it notes the progress made in establishing a recovery in the EU real economy and the efforts made by the EU Member States to put public finances on a sustainable footing; these are very important elements in ensuring a stable financial system going forward; set against these factors, the difficulties in programme implementation in some countries pose a significant challenge for the financial system, especially in view of the extent of its integration in recent times.
||Cutaway of the press room
||Soundbite by Andrea Enria (in ENGLISH) saying that the ESRB calls upon the competent authorities in the EU and its Member States to deliver on the commitments that have already been taken, namely the EU wide stress tests in the banking sector must act as an important tool to enhance transparency in the EU banking system and to provide a clear and rigorous assessment of the resilience of institutions within this sector in the current environment.
||Cutaway of the press room
||Soundbite by Mervyn King (in ENGLISH) saying that, first, the ability of banks to reduce maturity and where relevant currency mismatches in their funding structures and to absorb losses arising out of the current credit cycle; second, the risk of potential asset price imbalances in particular in property markets but also in financial and commodity markets; third, the external risks posed to the system from international capital flows, asset growth in emerging countries and a re-emergence of economic imbalances at a global level.
||The speakers leaving