Posted on 08/19/2008 12:26:04 AM PDT by TigerLikesRooster
Call for central bank harmony in crises
By Ralph Atkins and Haig Simonian in Zurich
Published: August 18 2008 23:33 | Last updated: August 18 2008 23:33
Emergency help provided by the world’s central banks should be better harmonised to stop large financial groups shopping around in future for the best deal, the head of Switzerland’s central bank has urged.
The possibility that greater integration of financial markets could one day lead to bigger banks going outside their home country for financial assistance when they are in trouble was raised by Jean-Pierre Roth, chairman of the Swiss National Bank, in an interview with the Financial Times.
His comments point to worries among central bankers that differences in the way they operate could result in cross-border “arbitrage” by the largest international banks. “We have to think about eliminating differences and co-ordinating more,” he said.
“It would be very delicate for us to have a Swiss bank that required a massive credit not knocking on our door, but knocking on the door somewhere else,” although this was just a “theoretical example”.
(Excerpt) Read more at ft.com ...
Ping!
It could be called, why, The World Bank. It could manage, what else, The International Monetary Fund.
yitbos
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.