Divergence in price and cost competitiveness has also been associated with a steady widening of current account differences within the euro area (see figure 10). In contrast to earlier years, current account deficits also exhibit high persistence, leading to the accumulation of large negative net foreign asset positions.
The Board endorses the FDIC recommendations that would eliminate the statutory restrictions on risk-based pricing and allow a 2  BIS Review 26/2002  premium to be imposed on every insured depository institution, no matter how well capitalized and well rated it may be or how high the fund's reserves.