Trichet Sees a 'Lot of Hard Work to Do' on Some European Banks

The transcript discusses financial stability, comparing the banking systems of the US and Europe. It highlights the dominance of banks in Europe as a channel for financing the economy, contrasting with the US market-based system. The recapitalization efforts in Europe were significantly larger than in the US. Despite improvements, global financial risks persist, with continued over-leveraging and increasing debt levels, particularly in emerging economies.

What is the primary channel for financing the economy in Europe?

• Government bonds

• Banks

• Stock markets

• Venture capital

How does the effort to recapitalize banks in Europe compare to the USA?

• It was smaller in Europe

• It was not needed in Europe

• It was about the same

• It was three times bigger in Europe

What is the current status of European banks according to the transcript?

• They are closing down

• They are strong and meet international standards

• They are struggling with liquidity

• They are weak and non-compliant

What is a major concern regarding global financial stability?

• Decreasing private investments

• Decreasing public debt

• Increasing global leverage and debt

• Stable economic growth

How have emerging economies' debt levels changed post-crisis compared to advanced economies?

• Emerging economies' debt has decreased

• Both have decreased equally

• Emerging economies' debt has increased more

• Advanced economies' debt has increased more