- ECB President Mario Draghi
The European Central Bank is ready to take fresh action if needed, however, governments across the region should implement more structural reforms as money from the ECB cannot create real economic growth, the ECB President Mario Draghi said Wednesday. He also assured that the ECB's monetary policy will remain accommodative for the foreseeable future. His remarks came as investors all over the world felt anxious after the Fed's Chairman Ben S. Bernanke said the U.S. central bank is considering winding up its massive stimulus programme later this year.
The ECB has already helped to resolve problems of funding for banks in the 17-nation economy as well as addressed the risk of a Euro breakup. However, many crucial problems remain out of the ECB's competence. Therefore, it cannot repair the capital of banks or address the credit risk of individual businesses. During the speech Mario Draghi also stressed out the necessity of a review of banks balance sheets in the Eurozone that will deliver a transparent assessment of the health of banks. Banks should function correctly in case the credit is to flow. In addition to that, Draghi said that the region's central bank does not have a foreign exchange rate policy, however, it closely monitors the level of the shared currency.
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