This infers that, when the central bank does not have direct supervisory responsibilities, it should receive such information in a timely fashion from the competent supervisory authority. Furthermore, banking supervisors should exert strong pressure on financial institutions to disclose in a prompt and coherent fashion their balance sheet situations.
This is key to restoring the confidence of market participants both in themselves and in the market. In the European context, cooperation among supervisors should be strengthened. More important, those euro area countries where there are still legislative obstacles for the supervisors to provide information to the ECB on specific banking and financial institutions should act promptly to remove them as soon as possible.