In the wake of the publication of the FSF* recommendations, the European Banking Federation publishes today its own considerations on the current financial crisis. National banking Associations and their member banks thus aim to help the various stakeholders involved in the management of the financial crisis make appropriate policy choices when developing further strategies. European banks stress that: - as a collective task, it is crucial that all stakeholders help bring back confidence in the markets; - the roadmap adopted by ECOFIN last October is the sensible way forward as it will increase the soundness of the EU regulatory framework and limit risks of similar future crisis; - industry and market-led efforts are already under way, particularly with regards to transparency in structured credit markets; - the crisis is not necessarily a sign of failure of Basel II, which had not yet come into full effect when it unfolded; - the coordination of efforts at national and European levels is crucial, in order to ensure rapid and full disclosure to the market of information regarding securitisation exposures at individual entities; - authorities should remain ready to act to re-establish normal functioning of the markets and be given strong political support; - final lessons cannot yet be drawn, reliable information and analysis of causes and consequences, with a consultative and coordinated approach, will be necessary before long-term policies are defined. The EBF overview lists preliminary recommendations on a number of key issues and is published jointly with two papers presenting more detailed recommendations on the rating of structured credit product and liquidity risk management. “As key stakeholders, European banks will continue to monitor ongoing initiatives and to develop further recommendations on crisis-related issues; declared Guido Ravoet, Secretary General of the EBF. We believe the FSF has conducted a thorough review and identified the right set of issues going forward, which are entirely consistent with the EU’s Ecofin roadmap.” * FSF= Financial Stability Forum