The councils can make recommendations for appropriate prudential standards in the interest of safety of the financial system, but notably, not for forbearance or relaxations. The two seemingly paradoxical trends make eminent sense and supplement each other. 18. A brief review of the situation across advanced economies shows that even as details differ, the thrust is the same.
Markets, however, are not yet fully convinced that these efforts will be sustained. But one thing is clear: Although the first steps have been taken, further extensive consolidation measures and structural reforms are very much necessary. The Eurosystem responded to the crisis by cutting interest rates and launching non-standard monetary policy measures.