It has made clear that the procedures in place for assessing threats – stemming from the proliferation of individual, mutually reinforcing, risks of relevance to the stability of the financial system or the real economy as a whole – were inadequate. The governments and central banks have both contributed to stabilising the financial system.
4 This approach is consonant with views expressed by some EU members to the effect that formula setting – for example, putting a floor on the portion of an employee’s salary that must be deferred – is the surest way to produce changes in bank practice.