Strengthen the means of Business oportunity
Author: Hector
Strengthen the means
For this reason, the authorities claimed Irish, Spanish, German, British and U.S. to strengthen the measures taken to date and extend them to all its banking system, while also recommends the extension to more economies to ensure that vulnerability of the global banking system disappears “once and for all.”
Nevertheless, recognizing that the governments of these countries have made or are making “significant efforts” to crystallize the losses, raising capital and implementing plans of deleveraging and disinvestment in the banking system.
Without naming any country, the IMF recommends that countries whose banking systems are still problems to improve their transparency, by running tests “more rigorous and realistic”, and recapitalize, restructure and “if necessary”, close those weaker institutions.
“Failure to carry out these reforms in the financial sector in the longer term, the difficulties of short-term financing may be aggravated to result in other systemic liquidity event,” he warns.
In this sense, warns that despite the transfer of private sector risk to the public sector during the crisis, has regained confidence in the banking systems of many advanced economies, and the circumstance continues to interact in a manner prejudicial to the risks sovereigns in the euro area.