The latter has the information on individual participants and market developments, and is responsible for the stability of individual institutions, while the former has the analytical capabilities for assessing macroeconomic risk and global financial market developments.
A properly functioning system requires a full flow of information: from the supervisory authority to the central bank, with a view to providing all the relevant information to monitor and analyse risk and, vice versa, from the central bank to the micro-prudential supervisor in order to provide the result of the risk analysis and ensure that appropriate measures are implemented.