Peter Straarup (photo: Danske Bank)
This responsibility the new president of the Danish Bankers Association, Peter Straarup, Danske Bank Director, accepts. Thus, he meets the strong criticism upon an interview from the 11th November, when he said the following about banks’ role in the financial crisis:
- We have no responsibility for the financial crisis. Neither the National Bank nor others foresaw what would happen. You can not claim Danske Bank a liability that we should have seen something that nobody else saw.
But now Straarup clarifies that banks do have a responsibility. Not to foresee the strength of the crisis – because nobody could – but to the crisis.
- We have like others some responsibility for what has happened. And we have no interest in not showing humility [for the governments' decision for 2 "Banking Packages", ed.]. I think the political process in the wake of the crash of Lehman Brothers [American investment bank, which cracked and led to the Banking Package I, ed.] has been good, so I see no reason to send anything other than a humble thanks, says Peter Straarup.
He declares that it must be less fun to drive bank in good times – growth ambitions and profit expectations should simply be lowered. But Straarup warns to be extra hard on Danish banks compared to foreign banks. It would affect the population and the national economy, warns Straarup.
- Internationally, you are very careful about going too fast with the new regulation. And I would also argue that one should be cautious. But it is important that new rules are defined according to the level playing field principle. And it must be borne in mind that if it’s decided politically to slow down the Danish banking sector compared to the international, it will also mean a slow-down for the clients of the Danish banks, “says Peter Straarup.
He refers to the fact that an increased capital need in Denmark will inhibit banks’ ability to lend money. Earlier that day, director of the Danish Bankers’ Association, Jørgen Horwitz said that this could particularly affect small and medium enterprises.
As a president of the Bankers Association, Peter Straarup is now to influence the Danish politicians and officials to define sensible regulatory requirements, which can help to mitigate future banking crises. But the harsh words from political side have not poisoned the negotiation climate:
- I can not protest that politicians rightly makes demands on banks. It is legitimate. We have a long tradition of good cooperation with the government, parliament and officials, and cooperation will prospectively be constructive, and value adding, says Peter Straarup.
Source: Jyllands-Posten
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