Central bank should harmonise more in crisis

August 19, 2008

, LONDON, August 19 – Central banks around the world should co-ordinate more in times of crises to prevent financial groups from looking outside national boundaries for assistance, the head of Switzerland\’s central bank said in an interview published Tuesday.

Speaking to the Financial Times, Jean-Pierre Roth noted that while such co-operation was not currently underway, it was "important to be aware of the question."

"We have to think about eliminating differences and co-ordinating more," the chairman of the Swiss National Bank told the business daily.

"It would be very delicate for us to have a Swiss bank that required a massive credit not knocking on our door, but knocking on the door somewhere else," he added, noting, though, that this was a "theoretical example".

Roth continued: "If one central bank has more liberal rules, is that acceptable? Of course, everyone has to decide for themselves. But we have to think about integrated markets, international banks (and) common problems."

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