2021-05-08

Bankers and regulators yesterday painted a challenging picture for the global economy but stressed that many aspects would have a resounding impact in the next few decades if properly handled.

Addressing the Asia Global Dialogue,the annual forum of Fung Global Institute,HSBC chief executive Stuart Gulliver said the euro zone lacked four vital elements to keep it together.

These,according to him,are:a Europe-wide deposit insurance provide by the European Banking Authority in euros,to ease concerns on bank solvency and currency value;a European version of the American Troubled Asset Relief Programme (TARP) to help recapitalise banks,supported by a permanent rescue fund to succeed the temporary European Financial Stability Facility(EFSF) ;a joint euro bond,with the money going to the trouble;and a stronger fiscal union.

But,he said,"There is on evidence of the political will necessary to make this happen...in particular from the stronger countries,all of whom will lose out massively should the euro zone eventually collapse".