We want to better understand the propagation mechanisms that played such a big role in the ‘dash for cash’ episode. Taking advantage of the FSB’s broad membership, all relevant types of authorities take part in this work, including the central banks that had to intervene, and the market regulators overseeing these markets.
I think the general conclusion of the FSB-review could be to strengthen risk surveillance in the nonbank sector and take steps to enhance the sector’s resilience. This includes reviewing the effectiveness and adequacy of the instruments that are already available. To wrap up, in the near future banks are likely to start feeling the impact of months of economic disruption.