While synergies between the new supervisory and existing monetary policy functions exist, the ECB will strictly respect the principle of separation between monetary policy and banking supervision, as foreseen in the SSM Regulation. Such separation will ensure that the ECB will continue to fulfil its primary mandate of price stability in complete independence, in line with the Treaty.
For example, the Federal Reserve introduced measures to provide funds to issuers of commercial paper (CP) and holders of asset-backed securities (ABS).Meanwhile, the Bank of Japan purchased CPs, asset-backed commercial papers, and corporate bonds in response to the rapid deterioration of market liquidity in those markets, which funded large non-financial corporations directly impacted by the financial crisis.