Recovery & Resolution Planning Recovery and resolution planning for insurance firms also requires further work. The regulatory regime for insurance is not sufficiently robust or consistent across Europe. This issue is accentuated by the inconsistency in insurance compensation schemes across Europe – an issue for both home and host supervisors.
The other type of money issued by central banks is in the form of reserves, which are exchanged by intermediaries whenever bank deposits are transferred, or returned to the monetary authority when depositors request cash. Their importance lies in their link with bank deposits. In the euro area, refinancing operations were the main tool for providing the banking system with reserves up until 2015.