European Systemic Risk Board (ESRB) Annual Report 2011:
- extract from the presentation of the Annual Report 2011 by Mario DRAGHI
Lieu: Brussels, Belgium - EP
End production: 31/05/2012 First transmission: 31/05/2012
Mario DRAGHI, European Central Bank President, met today the Economic and Monetary Committee as Head of the European Systemic Risk Board (ESRB) to present its first Annual Report 2011. Mario DRAGHI discussed with MEPs about the latest indications regarding risk build-up, as well as the risk effects whether the austerity and growth strategies.
The future of the Eurozone and its latest developments also focused the debate, specially the situation of some country's banks. By reporting back on its work within the prevention and mitigation of systemic risks to financial stability, Mario DRAGHI discussed on ways to stabilise the financial system, and different solutions to emerge from the crisis.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot of the EP, Brussels
||Arrival of Mario DRAGHI, President of the ECB and Sharon BOWLES, Chair of the EP ECON Committee
||SOUNDBITE (English) Mario DRAGHI, President of the ECB: "The next step for our leaders is to clarify what is the vision from certain number of years from now. How is the euro going to be, to look like in a certain number of years from now? What is the Union vision that you have? I think this is been specified, the better it is".
||SOUNDBITE (English) Mario DRAGHI, President of the ECB: "The next question is how do we substantiate this greater clarity? One first step we could take is exactly to create what has been defined as a 'banking union'; what has been proposed is to have a set up based on three pillars: a European deposit guarantee scheme, a European resolution fund and greater centralisation of banking supervision".
||SOUNDBITE (English) Sven GIEGOLD (Greens/EFA, DE): "One very concrete question on Bankia: in December last year the EBA said there would be a recapitalisation need of 1.33 billion, now there is a recapitalisation need of 19 billion, and in between 4.9 were already allocated, that's a huge gap that show a quality problem and what does the ESRB recommend in order to avoid that this happens again and that this figures need to be precise in such systemically important questions?".
||SOUNDBITE (English) Mario DRAGHI, President of the ECB: "I think what Dexia and Bankia show is that whenever we are confronted with the dramatic needs to recapitalise, if you look back the reaction of the individual governments, countries, the national supervisors... is first to underestimate the importance of the problem, then come out with a first assessment, then a second, then a third, then a fourth... and this it has been the experience everywhere. And that's the worse possible way of doing things, because everybody ends up doing the right thing, but at the highest possible cost and prize! I really urge all governments to keep this in mind, that is better in a sense to err because of 'too much' at the very beginning rather than err by saying 'too little'"
||SOUNDBITE (English) Mario DRAGHI, President of the ECB: "Further centralisation of banking supervision is needed, specially for the large systemic groups; and systemic doesn't necessarily need only 'cross border' groups, because as we can see with Bankia for example, is not cross border but is very systemic".
||SOUNDBITE (English) Mario DRAGHI, President of the ECB: "We are more ambitious, we want to have early, candid, complete, thorough exchange of information in the ESRB, that is what we are aiming for now, and I think that certainly as the euro area is concerned, much more can be done to get that".
||SOUNDBITE (English) Sharon BOWLES, Chair of the ECON Committee: "Thank you very much, and thank you for saying that you should listen to the Parliament when we say things. Perhaps you could write to the Council and Commission and reiterate that during the numerous trialogue processes that are going, in particular on CRD and CRR".