Banking authorities reject idea of raising capital requirements

RAISING capital requirements for banks in the midst of the financial crisis would make matters worse and banking authorities oppose the idea, European Central Bank (ECB) president Jean-Claude Trichet said on Thursday.

“It is not our position, and we will do all that we can to pass the message that we are not in agreement with that. That would augment the pro-cyclicality of the present period,” Trichet said in a panel discussion at the annual meeting of the forum.