European Central Bank President Jean-Claude Trichet on Friday warned that banks risk becoming addicted to cheap cash provided by central banks in their efforts to get them lending again.
Although it was “too early to say the crisis is over,” it was time to unwind some of the measures that propped up the banking system during the financial crisis, Trichet said in a speech at the European Banking Congress in Frankfurt.
“Emergency treatment and strong medicines are sometimes necessary. But, if their use is prolonged, they can lead to dependence and even addiction,” he said.
“Eventually, the administration of painkillers must be stopped if patients are to get back on their own two feet,” he said, also warning that the ECB would have to take away its support “promptly and unequivocally” if it posed an inflation risk.
He said the ECB would soon start withdrawing some of its “extraordinary measures” to ensure they do not cause higher inflation.
The central bank is expected to provide details on how its stimulus will be scaled back at its meeting on Dec. 3. Policymakers are meeting on Thursday for discussions ahead of the decision.
Responding to criticism against over-regulation as financial markets start recovering, Bundesbank President Axel Weber said regulators must press ahead with reform to “make the system more resilient.”
The worst financial crisis since the Great Depression has sparked calls for a radical overhaul of banking supervision.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
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