The IMF supplies loans to international locations with cost issues and oversees the worldwide monetary system. For director Kristalina Georgieva, the tip of Credit Suisse was a big occasion. In an unique interview with SRF, she regrets not having warned extra clearly upfront about dangers from Swiss supervision.
Kristalina Georgieva
Director of the International Monetary Fund
Open the individuals field. Close the individuals field
The Bulgarian economist and politician has been Director of the International Monetary Fund (IMF) since 2019. Before taking over her place on the IMF, she labored for the World Bank and the European Commission.
SRF: The state-backed takeover of Credit Suisse by UBS was nearly a yr in the past. How important was the occasion globally?
Kristalina Georgiewa: It was important – additionally how shortly the Swiss authorities acted. And additionally how completely they’re now processing the occasions.
In 2019, the IMF carried out an intensive overview of the Swiss monetary sector. We have been involved on the time and felt that extra wanted to be finished within the space of supervision. We ought to have been extra forceful. This is a lesson for us as we look at the monetary sector. When we see one thing, we have to say it loud and clear.
About a month in the past, the Swiss authorities outlined proposals for stricter banking regulation. There is resistance from UBS relating to increased capital necessities. Above all as a result of UBS sees its worldwide competitiveness in danger. Is she proper?
The monetary sector is essential for the financial system; it performs a vital function, particularly within the Swiss financial system. So it’s proper to pay extra consideration to it. But I wish to say one factor to the Swiss: the report is not going to solely keep in Switzerland, this report has international significance. Although the occasion befell in Switzerland, the explanations for it can’t solely be present in Switzerland. That’s why UBS should not fear an excessive amount of. It is unlikely that solely Switzerland will make such calls for and implement them inside its borders.
Switzerland is a part of Europe, and there’s at the moment intensive dialogue within the media and politics about whether or not Europe might be economically depending on the USA and China. Is Europe at a crossroads?
Definitely, Europe has large potential. But there are the explanation why Europe is falling behind. One of those is much less well-developed capital markets. If you examine the US and Europe, the scale of monetary property is sort of related. But within the United States cash is invested, it really works onerous, so to talk, however not in Europe. The cash is “lazy” as a result of the capital markets will not be properly developed – as a result of there isn’t any capital markets union.
Europe is a way of life superpower.
It’s a essential time for European leaders and for European residents to say: Hey, we will not fall behind. We can truly be a lot stronger if we’re extra built-in.
They say cash is lazy in Europe. The present dialogue raises the query: Are individuals in Europe lazy? For instance, Nicolai Tangen, supervisor of the Norwegian oil fund, mentioned in a extensively quoted interview that it was disturbing how rather more hard-working, formidable and fewer regulated U.S. firms and employees have been in comparison with these in Europe. You are European your self and have spent a big a part of your profession within the United States. Do you share this view?
Well, sadly I’ve to agree. In Europe there’s positively room to extend efficiency. On the one hand, it is about way of life: Europe is a way of life superpower. But that additionally has its value. And the value for Europeans having fun with extra holidays than within the USA, for instance, is competitiveness.
I’m conflicted about this as a result of I truly assume it is vital that individuals have a top quality of life. And after I lived in Europe, I loved it myself. But small changes in the direction of increased productiveness and extra consideration to how we spend our working time would not be a foul factor.
Stefanie Knoll carried out the interview.