Bernanke: Europe must help banks

22 March 2012

Policymakers across Europe must be proactive in their attempts to strengthen the continent's banking system as its debt crisis continues to rumble on.

That is the opinion of Ben Bernanke, chairman of the Federal Reserve, who has called on leaders in the region to implement further measures to assist financiers in their journey back to health sooner rather than later.

During a speech delivered to Congress, Mr Bernanke insisted that "more needs to be done" as a "full resolution" of the crisis will only be achieved through "further strengthening of the European banking system".

The official went on to say Europe still poses "significant downside risks" through its negative impact on global markets, meaning policymakers should strive to implement more debt firewalls to protect against further contagion.

Therefore, Mr Bernanke insisted Europe must "increase economic growth and competitiveness and to reduce external imbalances in the troubled countries" in the near future.

By Asim Shah

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