The recent set of stress tests coordinated by the Committee of European Banking Supervisors, in close collaboration with the ECB and the European Commission, may represent a useful example. A third area of cooperation concerns the formulation of risk warnings and policy recommendations. The ESAs as well as the national supervisory authorities will play a very important role in discussions regarding the ESRB.
Many banks will benefit from the elimination of unnecessary costs associated with sweep programs and other reserve-avoidance procedures. Over time, these measures should help the banking sector attract liquid funds in competition with nonbank institutions and direct market investments by businesses.