Obviously, a high degree of financial efficiency, in which resources are allocated efficiently from savers to investors and where risks are appropriately priced and distributed, normally contributes to financial stability. At the same time, stability is a precondition for a smooth and efficient functioning of the financial system.
My first point goes somewhat beyond the current juncture, in fact, because it relates to the macroeconomic projections. What is crucial is that at least some potential developments  BIS Review 144/2007  1  already incorporated in the risk scenario have now become a reality and are therefore of greater relevance to the baseline scenario.