In order to strengthen, in this new context, the safeguards for savings invested in securities, steps must be taken to ensure more effective controls on financial markets and firms issuing securities, if necessary by forging Europe-wide links. 2.
The recommended actions are in five areas: •  2  Strengthened prudential oversight of capital, liquidity and risk management  BIS Review 49/2009  •  Enhancing transparency and valuation  •  Changes in the role and uses of credit ratings  •  Strengthening the authorities’ responsiveness to risks  •  Robust arrangements for dealing with stress in the financial system  These measures are a first step to a regulatory response which aims at tackling those weaknesses of the global financial system that caused the current and severe financial stress.