They need to be managed carefully, avoiding any confusion of mandates and responsibilities. In particular, we need to avoid moral hazard. Liquidity support provided to banks that face funding difficulties cannot delay the necessary fundamental restructuring of such institutions.
Recent experience confirms my view that central banks must be closely involved in addressing financial tensions, cooperating closely with supervisory bodies in supporting financial stability, even while recognising the primacy of their own price stability mandate. Concluding remarks To sum up, deeper financial integration within Europe is critical in making the economic dimension of Economic and Monetary Union function better.