G20 summit to focus on establishing global central bank
Azerbaijan, Baku, Feb. 27 / Trend , A. Badalova/
The efforts by central banks to eliminate the global financial crisis are too slow, the U.S. Tarleton University professor Boyd Collier said.
The European Union seeks ways to eliminate global financial crisis. The EU leaders will try to coordinate a single position on this issue at the G20 summit to take place in London in April.
"Agreement has been reached to take concrete measures to up control over international financial risks," German Chancellor Angela Merkel said after the European Union Berlin forum at earlier last week.
"I have not found any reports that banks and related financial institutions have conducted internal operations audits for the purpose of getting a realistic appraisal of the current value of their assets," Collier told Trend via e-mail.
He said all parties are stymied by the fear that such action will reveal a significant level of insolvency.
Potential buyers (public or private) should be actively sought to liquidate salvageable but discounted assets while striving to maintain solvency, Collier added.
The April summit may decide to create a global central bank task force to coordinate and reconcile national efforts and avoid economic nationalism, Collier said. "The tendency to protect your own economy first is understandable but is counterintuitive with very negative consequences," Collier said.
The upcoming summit may also decide to nationalize large banks at least 70 percent.
Nationalization must be temporary while rebuilding the vigor of the private sector of the economy, Collier added.
Do you have any feedback? Contact our journalist at: [email protected]