The requirement to disclose price data is limited to higher-priced loans, where concerns about market efficiency and consumer protection that I just described are greatest, and excludes the vast majority of prime loans, where limited variation in prices helps to allay such concerns.
These dynamics underscore the importance of strengthening the mechanisms that prevent such risks – the SGP, surveillance of broader macroeconomic imbalances, and stronger financial supervision. However, the liquidity dry-outs and the contagion risks also call for stronger backstop mechanisms, to provide significant, albeit temporary, liquidity assistance. For the same reason, a permanent crisis management framework is appropriate for the euro area.