Dr. Josef Ackermann: "Rebuilding confidence is essential."
October 13, 2008
Leaders of the global financial industry will take whatever actions necessary to contribute to stability now and in the future, said Josef Ackermann, Chairman of the Board of Directors of the Institute of International Finance.
Speaking at the 2008 IIF Annual Membership Meeting in Washington D.C. on Sunday, Ackermann emphasised that rebuilding confidence within the financial industry was essential.
The Chairman of the Management Board and of the Group Executive Committee of Deutsche Bank said that both official concerted international interventions and resolute efforts by financial firms were required. He noted that companies are taking vigorous actions to strengthen their operations, with many firms having disposed of troubled assets, taken substantial write-downs and obtained new capital.
“The leaders of the financial industry recognise the weaknesses in our industry and the concerns that exist. Integrity and transparency must be the guideposts for our business and influence all aspects of the ways banks operate,” Ackermann said.
“Systemic crises need systemic responses. To avoid arbitrage between national government approaches there has to be internationally coordinated, consistent approaches that produce a level playing field,” he added.
“The structural strains that we are seeing in this first major global crisis of the highly inter-connected global financial system need to be comprehensively analysed and approaches should be developed to overcome the weaknesses and strengthen the structure. The IIF’s Board of Directors has decided that work in this area will be an important priority for the Institute,” said Ackermann.
Against the backdrop of the market turmoil, Ackermann stressed that the regulatory focus needs to be on increasing the efficiency of supervision and enhancing international coordination and consistency. “In this regard we believe consideration should be given to establishing a global regulatory coordinating body.”
The IIF also published a report on Sunday on capital flows to emerging markets, which showed that these have been resilient this year, despite the strains in global credit markets.
In addition, the Institute said that as an integral part of its efforts to minimise the risk of a recurrence of financial crisis, it would launch a Market Monitoring Group with a view to detecting at an early stage the emergence of points of vulnerabilities.