Sunday, July 3

Advised expect central bankers investors less

BASEL, Switzerland investors should prepare itself for smaller profit margins as banks away more capital to an another global financial crisis to avoid Stow, on Sunday cautioned the world's major central banks.

She are advised also central banks all over the world, that interest rates may soon rise to the need to bring inflation under control.

Said the Bank for international settlements-new rules for banks, after its capital increase pillows would likely lead to more predictable and are smaller.

But the Bank, an umbrella organisation for the world's most important central banks, in its annual report, also said that bank managers and shareholders expectations still not accordingly adjusted.

It said may be caused because "A more stringent global monetary policy is needed to fight included off inflationary pressure and financial stability risks."

Jaime Caruana, General Manager of the Bank, said the global financial crisis 2008-2009 throws long shadows, but there is evidence of a return of to excessive risk-taking.

He warned of threats by unsustainable public debt soaring energy and commodity prices and inflation, which already meet many countries and threaten others.

He said "to respond during investors, some of the risks was promoting part of crisis management, there are indications that investors are going too far in some areas can again,".

Caruana said that while budgetary problems in highly indebted eurozone Nations such as Greece, Ireland and Portugal are the most visible, other major economies must be also careful and quickly improve, prevent their permanent another great global crisis triggered.

Interest rates, he proposed to rise.

Caruana said "Is there a need to normalize monetary policy," reporters in Basel. "Globally, short-term interest rates already negative, fell in the past year further." "Normalization would reduce the incentives for excessive risk-taking prices and necessary structural and balance sheet would support adjustments."

The so-called Basel III rules that require large cash buffer to a further shock to the global financial system to prevent when Lehman Brothers collapsed in 2008.

Keep more capital would in the money that banks borrow and invest but improved capacity, to withstand the blow, cut if loans or investments go sour.

The Bank said in its annual report that accelerate Nations comply with the rules, if banks are profitable and will credit flow should not be restricted.

On Saturday, one of the establishment of the Basel committees proposed rules the largest banks in the world, an additional 1 to 2.5 percent of the capital on their balance sheets, depending on their size to keep.

The aim is to discourage banks before that so big that their failure would destabilise global financial system.

The cash buffers that should hold huge global banks would be in addition to an existing request that all banks hold 7 percent of their assets in the reserve.

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