It is absolutely essential that the new test adhere to internationally accepted standards and methods, and that markets be promptly informed of the results; and it is necessary that any bank that fails to pass take adequate measures to strengthen its capital. Alongside the microprudential supervisory authorities, a macroprudential supervisory body will operate at the ECB to monitor systemic risk.
The European Systemic Risk Board will analyse the evolution of the credit and financial aggregates to determine whether unsustainable imbalances with systemic implications are being created. The Board will be empowered to recommend to the competent authorities that they take the measures necessary to prevent “speculative bubbles” in the financial and property markets. Economic policy coordination.