The second cure involves lifting the cloud of suspicion over European banks. The ECBwillundertake an asset-quality review before it takes up the role of euro-zonebankingsupervisor next year. Previous stress tests by national supervisors were not toughenoughandconvinced nobody. The asset-quality review is the ECBs first and best chance toestablishits credibility. Banks that fall short must be recapitalisedby raising fresh equityfromprivate investors, by bailing in creditors and, in some cases, by bringing in public money.
二,消除对欧洲银行的疑虑。ECB会做一个资产质量评估,然后在明年,担当欧元区银行监管的角色。之前,国际监管机构也做个压力测试,不过力度不够,也没说服力。这次的资产质量评估是ECB建立信誉的第一个也是唯一一个机会。落后的银行必须进行资本重组,重组的方法可以是从私人投资者那里筹集新的资产净值,可以是债权人纾困,在某些情况下,还可以引进公款。
That raises the familiar spectre of the Spanish and Italian governments worsening theirownfinances by borrowing to prop up domestic lenders. That is a reminder of theimportance of thethird cure: a proper banking union, supervised by the ECB, with a commonresolution fund and a jointdeposit-guarantee scheme. The eurozone will not work without a banking union. HereGermany is the block: it hints that it mightconsider taking on such mutual obligations in thefuture, but not now. The problem is that nowis when the banks are half-dead. Waiting forzombies to come back to life is a fools game.
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