However, there seems to be a disconnect between our mandate and the scope of our regulatory purview. We do not supervise all the players in the financial system. Non-bank financial institutions fall under the purview of another regulator while still other regulatory agencies are responsible for other parts of the financial system such as cooperative societies and credit unions.
On 9 August 2007, for example, the ECB was the first central bank worldwide to react decisively to the turbulence emerging in the financial markets. However, the financial market situation deteriorated so dramatically in the course of 2008 that the transmission of monetary policy was significantly disrupted.