Certain economic approaches may now suggest different ways of coping with financial stability challenges that, on some occasions, would involve a wider role for central banks. But the ECB, as an institution bound by the rule of law, has to operate within the limits set by the Treaties.
Article 127(5) of the Treaty implies that the ECB has only a contributory and supporting role with regard to financial stability. This role is partly discharged through its advisory role in the preparation of EU or national acts. Beyond that, the ECB’s financial stability role is embedded within the ECB’s basic monetary policy task and the ECB’s microprudential supervisory tasks.