Regarding fiscal policies, an ambitious and coordinated fiscal stance remains critical, in view of the sharp contraction in the euro area economy. Measures taken in response to the pandemic emergency should as much as possible be targeted and temporary in nature.
5  Therefore, unnecessary “noise” perceived by depositors relating to the uncertainty of the long term survival of a financial institution can spark off liquidity crises and bank runs. Financial institutions must therefore invest appropriately in developing effective corporate communication strategies as a new liquidity management tool.