May 28, 2016

Bank regulators are financially advising Europe as that “grandmother” Pope Francis considers Europe now is

Sir, Tony Barber in his essay “State of the Union” of May 28 writes: 

“Pope Francis pulled no punches in November 2014 when he addressed the European Parliament on the EU’s deepening malaise. “In many quarters we encounter a general impression of weariness and ageing, of a Europe which is now a ‘grandmother’, no longer fertile and vibrant. As a result, the great ideas which once inspired Europe seem to have lost their attraction, only to be replaced by the bureaucratic technicalities of its institutions,” the pope said.”

Well if Europe is now a grandmother, then the credit risk adverse bank regulations could be perfectly appropriate; in fact any financial advisor, advising a grandmother should advice her something similar... or he would be disqualified.

But I know, for a fact, that Europe is now no longer fertile and vibrant, was turned into a grandmother, partly because regulators, with bureaucratic technicalities, do not allow banks to take those risks the young need to be taken, in order to keep the economy fertile and vibrant, and so that they could also have a better future.

Europe, if a good grandmother, should not permit the Basel Committee to regulate banks hurting its grandchildren. Let us all pray for that Europe has not turned into a bad and egoistical grandmother.

@PerKurowski ©