They fall short in terms of their effectiveness, as they are limited in size and seem to focus on asymmetric rather than symmetric shocks, although existing Treaty provisions already allow for financial assistance to a Member State threatened with severe difficulties caused by exceptional occurrences beyond its control.6 Moreover, the proposals do not sufficiently counteract moral hazard.
Following the recent study on cost of banking services, the Central Bank will soon be launching the results of the survey and a sensitisation program to educate the public for more effective market discipline. We believe that these measures will encourage efficiency in the banking sector and resultant lowering of bank costs for the benefit of both the banks and the economy. 10.