It was perfectly rational for individual emerging market authorities to draw down their foreign exchange reserves in order to insulate their respective economies from the turbulence in international financial markets. Nevertheless, aggregated across emerging economies, such actions had the effect of reducing funding liquidity at banks of advanced economies.
Second, accountability and sovereignty also need to be proportionate in areas that are not exclusively dealt with at EU level but of shared competence. For instance, more specific arrangements within our accountability framework have been established for banking supervision.