Furthermore, supervisory cooperation should also be intensified on a cross-sector basis as the boundaries between financial activities are becoming increasingly blurred and all financial sectors can be affected by market developments. More broadly, all competent financial authorities, including central banks, supervisors and ministries of finance should strengthen their coordination mechanisms for managing crises impacting crossborder financial institutions.
Let me now illustrate the developments in financial markets since the beginning of the turbulence with the help of some charts. Chart 1 shows the recent movements in euro area stock prices, represented by the Dow Jones Euro Stoxx index. From 15 September 2008 until mid-January 2009, this broad index declined dramatically, losing about 30% of its value.