Finally, experience has demonstrated the greater efficiency of systems in which banking supervision is entrusted to the central bank. Central banks, in fact, are well placed to detect crises early, because they are in direct daily contact with the money markets and the payments system. Phase two. The second phase of the crisis was marked by the sharp slump in economic activity in 2009.
We all know that losses of any nature including those arising from frauds negatively impact the capital of banks which can endanger the safety of depositors’ funds.