So, central banking of the future should be prepared for such situations and be capable to deploy all tools which we now have labelled unconventional monetary policy. Active use of the central bank balance sheet and forward guidance will very likely become more standard instruments in our toolkit. That of course implies that we should be operationally ready to use them.
The second thing is that banks should not hesitate for a moment to admit to any deterioration whatsoever in credit quality and recognise it on their balance sheets – it has been said once before and I'll say it again: transparency is trumps. The third is to keep an eagle eye on the loan book at all times.