Among other supporting measures, strengthened prudential oversight of capital, liquidity and risk management is of the essence to ensure an appropriate capital treatment and disclosure of on and off-balance  12  BIS Review 105/2008  exposures and that liquidity buffers correspond to the liquidity risks incurred.
Supervisors and regulators will communicate early to firms’ boards their risk management concerns and the need to take responsive action. 5. Implications for monetary policy  The swinging and unpredictable interactions between the markets and real economic decisions are unlikely to have long-lasting and severe consequences for the macro-economy as long as monetary policy maintains a clear sense of direction.