We were facing doubts about the integrity of the single currency, not to mention a unique institutional environment that lacked crisis management capacities. We increased our accountability and transparency in line with the essential role we played in managing the crisis. And this was not only driven by external demands.
For example, financial sector entities, particularly banks, either as part of portfolio management or through statutory pre-emption, hold significant government debt as assets. There is a recognition that large swings in capital flows could have an adverse impact on the financial sector. There is also awareness of the potential use of prudential regulation to manage capital accounts.