At the end of 2010, the institution presented total assets of EUR 1,900 bn. But, according to the bank, on an adjusted basis, which reflected netting of derivatives and certain other balance sheet items, total assets were EUR 1,200 bn. In addition, according to some analysts, the grossing-up of derivatives assets alone would create a rise in total assets comprised between 42% and of 129% for the largest US banks. The discrepancies in the offsetting of transactions have been outlined by the Financial Stability Board. As a result, the two leading accounting Boards have swiftly reacted in putting this topic on their convergence agenda. I welcome this joint project and wish that the two Boards, after the consultation period with their respective constituents, will be able to publish a common standard that will facilitate the implementation of a global leverage ratio. 2.3 More generally, the differences in accounting standards between IFRS and US GAAPs have been a matter of concern from the beginning of the crisis. Since April 2009, the G20 has continuously asked the two Boards to converge towards a single set of high quality global accounting standards and to complete their convergence project by 2011 with the aim of remedying the major weaknesses identified during the crisis. The standard setting Boards have made progress, but standards have still to be finalised and this is not an easy path.
In addition to encouraging trends in the global economy, the stabilisation of output growth in the euro area has contributed significantly to this. However, the most recent industry and consumer surveys also give positive indications with regard to economic activity in the euro area. Therefore, it is likely that economic activity will accelerate in the second half of 1999 and the year 2000. When assessing the risks for price stability, the ECB does also monitor the external value of the euro. The weakening of the effective exchange rate of the euro, which remained at around 8% between the start of the year and early September, lent itself to an increase in import prices denominated in euro. Taking into account all available information, the outlook for the preservation of price stability remains favourable. However, recently inflationary risks have increased slightly. In the coming months it will therefore be necessary to monitor developments in the monetary aggregates and credit aggregates. In addition, the short-term effects of the increase in oil prices and exchange rate developments on consumer prices need to be taken into account. The latter factors should not affect the outlook for price stability as long as wage increases remain moderate. The wage round for the year 2000 will, however, play an important role in future price developments. On the basis of this current assessment of the monetary, financial and economic situation, the Governing Council of the ECB left the central bank interest rates unchanged at yesterday’s meeting.