Another point I would like to emphasise is that the Eurosystem has been working to mitigate inherent pro-cyclicality in its collateral framework by extending it, by aiming at calibrating risk parameters over a medium-term horizon, avoiding strong reactions to temporary market movements, and eliminating cliff effects and broadening its acceptance of credit risk assessment systems.
International coordination has also been advanced with the creation of the Financial Stability Forum, an initiative of the G 7 that draws on the Secretariat of the Bank for International Settlements. And the Basel Committee on Banking Supervision that evolved out of initial explorations of the Federal Reserve and the Bank of England has broadened international bank supervisory coordination.