PARIS, June 20 (Reuters) - European Central Bank (ECB) governing council member Christian Noyer told French paper La Tribune that he expected a gradual return to market confidence in the wake of the sovereign debt crisis.
'Since Europe has put in place a very complete support mechanism for countries which need it, confidence will come back gradually,' Noyer, who is also governor of the Bank of France, told La Tribune in an interview due to be published in Monday's paper.
Noyer said the current lack of confidence, which was resulting in banks depositing money with the ECB, was a result of the sovereign debt crisis.
Asked if plans for a global banking tax would ever see the light of day, Noyer replied: 'The tax plan is a matter for the states.'
'What is important for us, is that there is a consensus among the G20 countries to strengthen the banks' ability to resist crises, especially concerning their markets and securitisation activities which have been shown to be the most risky,' he added.
Noyer also said there was no firm timetable yet over the Basel III rules governing banks' capital requirements.
Noyer added that there was no reason for concern over a recent widening of spreads between French and German government bonds and described a recent decision by Moody's credit rating agency to downgrade Greece as 'incomprehensible.'
(Reporting by Sudip Kar-Gupta; Editing by Marguerita Choy) Keywords: ECB NOYER/ (sudip.kargupta@reuters.com; +33 1 49 49 53 39; Reuters Messaging:sudip.kargupta.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Since Europe has put in place a very complete support mechanism for countries which need it, confidence will come back gradually,' Noyer, who is also governor of the Bank of France, told La Tribune in an interview due to be published in Monday's paper.
Noyer said the current lack of confidence, which was resulting in banks depositing money with the ECB, was a result of the sovereign debt crisis.
Asked if plans for a global banking tax would ever see the light of day, Noyer replied: 'The tax plan is a matter for the states.'
'What is important for us, is that there is a consensus among the G20 countries to strengthen the banks' ability to resist crises, especially concerning their markets and securitisation activities which have been shown to be the most risky,' he added.
Noyer also said there was no firm timetable yet over the Basel III rules governing banks' capital requirements.
Noyer added that there was no reason for concern over a recent widening of spreads between French and German government bonds and described a recent decision by Moody's credit rating agency to downgrade Greece as 'incomprehensible.'
(Reporting by Sudip Kar-Gupta; Editing by Marguerita Choy) Keywords: ECB NOYER/ (sudip.kargupta@reuters.com; +33 1 49 49 53 39; Reuters Messaging:sudip.kargupta.reuters.com@reuters.net ) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.