A form of involvement of central banks which carries fewer moral hazard implications than the provision of liquidity consists of the central banks acting as a co-ordinator to facilitate private sector solutions. In this case, the central banks can act as “honest broker”.
Due to their unique position in the financial system, their independence from political considerations, their possession of special expertise, information and tools, they appear best placed to assume the role of overall co-ordinator. 3. Conclusions  Potential future risks and vulnerabilities in the financial sector continue to have their source in the European and global macro-economic environment.