The current crisis has shown that central banks’ role in supervising liquidity management must become proactive and forward looking so as to be compatible with the dynamic nature of liquidity. In addition, cooperation between central banks and authorities responsible for microprudential supervision needs to be enhanced in several EU countries. The mismatch between responsibilities and accountability in crisis management should be alleviated.
Crisis management remains a national responsibility, but streamlined in the 2008 Memorandum of Understanding which has set the direction toward more information sharing and better allocation of responsibilities in case of crisis. However, the current crisis has shown that rapid, and low cost decision-making is possible.