1. These remarks draw on Lane, P.R. (2021), “The monetary policy response in the euro area”, in English, B., Forbes, K. and Ubide, A. (eds. ), “Monetary Policy and Central Banking in the Covid Era”, CEPR Press, as well as Lane, P.R.
In particular, these incidents underscore the need for good risk management and effective internal controls by financial institutions. Indeed, both these elements are proving to be critical to ensuring the stability of individual financial institutions and financial systems. The role of the regulator in addressing these challenges is crucial.