The mechanism has been designed to harmonize bank crisis resolution policies in the euro area, guarantee centralized crisis management for cross-border groups, and mitigate the risks associated with the failure of systemically important banks. Once up and running, it will make available common resources for the necessary interventions.
Notwithstanding that our mandate is different and implies that some risks and scenarios are an unavoidable consequence of the policy stance, central banks should aim for the highest standards of both governance and risk management. And central banks are indeed increasingly performing more forward-looking risk assessments in response to the increased risk profile, since the financial crisis.