MNI: ECB Lautenschlaeger: Banks Must Adapt to Tougher Rules

By Christian Vits

     FRANKFURT (MNI) - European Central Bank Executive Board member Sabine

Lautenschlaeger on Tuesday urged European banks to improve their risk management

and to align to more stringent rules.

     "Some banks could improve the way they handle risks," she said in an ECB

panel discussion in Frankfurt. "They need to establish a strong risk culture,

set up adequate risk governance and integrate it into their overall structure."

     Lautenschlaeger also stressed that the sector has to adapt to more

stringent rules. 

     "It is true that they come at a cost, but in the long run, their benefits

are greater," she said. "Society benefits in any case, but so do the banks.

Strong rules help to win people's trust, and that is an important asset for

banks."

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com

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