GENERALE HEAD CALLS FOR BELGIAN BANK FLEXIBILITY
Belgian banks will need greater
flexibility to choose their sphere of operations by 1992, when
the European Community is due to introduce free competition in
banking throughout the bloc, Generale de Banque SA <GENB.BR>
president Eric de Villegas de Clercamp told a news conference.
    He said at present Belgian and Italian banks were the most
restricted in the EC.
    While German banks were free to hold stakes in commercial
companies in which they invested capital, Belgian banks could
do so only in severely limited circumstances for short periods.
    "The authorities concerned should introduce within a
reasonable period major modifications toward greater freedom
and flexibility if we want to retain competitiveness with the
neighbouring countries," de Villegas said.
    He said the EC authorities envisaged that after 1992
financial institutions would be able to start operations
throughout the EC.
    Since the control of each institution would remain in the
hands of the authorities in its country of origin, rules
applied in member states could distort competition unless they
were harmonised.
 REUTER
