Also important are a clear allocation of responsibilities and proper accountability to ensure that the right incentives are in place for the achievement of results in a cooperative manner rather than inter-institutional fighting, which is a recipe for disaster. To consider the options available let me refer for simplicity the Turner Review as a basis for the analysis.
17 In extreme synthesis, the Turner Review attributes to the central bank the main responsibility for conducting the risk analysis, but when it comes to the policy implications, three models are considered: •  In Model 1, the central bank identifies systemic risks and makes recommendations to the authority in charge of micro-prudential supervision, which sets out the main actions to be taken to address these risks.