Although this will require more resources and the development of expert knowledge, it is necessary to strengthen the financial system. For its success, it will also require support in terms of macroprudential supervision and coordination at both the EU and international levels.
At the EU level, financial stability frameworks are largely national with an EU umbrella superstructure to facilitate cooperation, but which has been found wanting in terms of efficiency, of ex-ante compatibility between micro-prudential and financial stability objectives, of a mismatch between responsibilities and accountability in crisis management, of the lack of a crisis resolution framework for systemic banks, and of deposit guarantee schemes not fully consistent with the single financial market.