Thanks to our stable principles, the Eurosystem’s risk management framework has successfully weathered the challenges of the financial crisis. The size and type of our operations changed, as did the assets we accepted as collateral. But our principles stayed the same. Like risk management in the banking sector, central bank risk management has to evolve with the times.
As I mentioned earlier, effective disclosure empowers consumers and enhances competition. But to be effective, disclosures must give consumers information that they can readily understand at a time when the information is relevant. I anticipate that to that end, the Federal Reserve will propose improvements to the rules governing the disclosure of mortgage loan terms and conditions and the timing of those disclosures.