More specifically, the ESAs 1) can issue binding technical standards to ensure that national supervisory authorities follow uniform and consistent approaches and develop a common rulebook applicable to all financial institutions in the European Union; 2) will be empowered to adopt binding resolutions to settle disagreements between national authorities on issues concerning cross-border supervision; 3) will perform tasks of coordination of supervisory activities, including within the colleges of supervisors; 4) will be directly responsible for overseeing the rating agencies; and 5) will set up and manage common databases for information exchanges with the ESRB for purposes of macro-prudential supervision.
Meanwhile, an improvement in the economic outlook, a gradual rise in medium- to long-term inflation expectations, and a rise in overseas long-term interest rates may lead to an increase in the expected path of short-term interest rates. Developments in long-term interest rates since the introduction of QQE reflect such downward pressure as well as upward pressure (Chart 3).