Final words Designing institutions and policies that incorporate appropriate incentive mechanisms plays a crucial role in determining the economic performance of an economy. Policy makers, including the central bank governor, still have a lot to learn in this respect.
The ESRB’s main tasks are threefold: to identify and prioritise systemic risks; to issue early warnings when significant systemic risks emerge; and to issue policy recommendations for remedial action in response to the risks it identifies. In addition, today’s globalised financial market implies that the efforts aimed at crisis prevention must have a global dimension.