A properly functioning system requires a full flow of information: from the supervisory authority to the central bank, with a view to providing all the relevant information to monitor and analyse risk and, vice versa, from the central bank to the micro-prudential supervisor in order to provide the result of the risk analysis and ensure that appropriate measures are implemented.
The “Rey Report” on Sovereign Liquidity Crises (named for its author, Jean-Jacques Rey of the Central Bank of Belgium) was a major effort by the G-10 countries to learn the lessons of Mexico.