HIGHLIGHTS-Trichet comments after BIS cbankers' meeting

BASEL, Switzerland, Nov 9 (Reuters) - Following are comments by Jean-Claude Trichet, chairman of the Global Economy Meeting, at a news conference on Monday.

This followed discussions involving central bankers from industrialised and major emerging countries at the Bank for International Settlements in Basel.

ON FINANCIAL MARKETS, ECONOMY

"We have seen improvements in the financial markets in general, steady narrowing in spreads across the board... seen confirmation of the end of economic freefall that occurred in the last quarter of last year and the first quarter this year, seen an element of stabilisation at a global level.

ON PHASING OUT NON-CONVENTIONAL MEASURES

"Those of us who have embarked on non-conventional measures, there is an element of gradual and timely phasing out of some of these measures. We're very convinced there are a lot of risks that remain, although you consider risks to be balanced. Confidence remains of the essence."

ON FUTURE CHALLENGES

"We've avoided depression, stabilised the situation. We have of course a large number of issues that are still there. As regards perspective we have in front of us, we have a very complex situation, lots of parameters to take into account, and the employment issue which is important because it has (an impact on) confidence.

ON VIGILANCE

"We have the question of oil and commodities, as you see the situation where we see elements that are encouraging, the confirmation of the fact that we avoided the extreme depression but we have elements that call for common vigilance."

ON BANKS

"We look at (the banking sector) as an important element in the present situation. One message for the banking sector would certainly be at a global level to continue to focus on the solidity of the balance sheet and utilise appropriate means by all channels that exist -- capital base, issuing stocks and shares, taking advantage when and where that is necessary options that exist."

ON INTEREST RATES, INFLATION

"On interest rates, we have our responsibilities, we have to take into account different structures, shocks of the economies. The purpose is to deliver price stability. Risks (on inflation) are balanced.

ON FISCAL POLICY

"We have fiscal imbalance issues. We will call (for a return to) sustainable path.

ON FOREX MARKETS

On currencies, we stick to what we said publicly." ON EMERGING MARKETS

"Potentials for emerging markets are there.

ON TRANSACTIONS TAX

"We did not discuss (the Tobin tax)."