This step has already been implemented for some institutions while non-bank SIFI designation is being studied for some large asset managers. I believe it is important that competent authorities in Europe are equipped with similar powers. Conclusion Let me conclude. Our current monetary policy setting is beneficial not only for euro area price stability but also for financial stability.
While it is the task of the Danish Systemic Risk Council to reduce the risk of political inaction bias. The Council can make recommendations and the minister then has to comply or explain. This ensures democratic accountability but it does not completely eliminate the inaction bias. The set-up with comply or explain can lead to a self-imposed inaction bias by the Council.