And it did so in a relatively “standard” fashion, employing a relatively small set of instruments in a rather predictable way. Through its refinancing operations, the ECB aims at supplying the amount of liquidity that is necessary for a smoothly operating banking system, influencing short-term money market interest rates to align them with the policy stance signalled by the Governing Council.
Besides its role in facilitating discussion on macro-prudential mandates and institutional set-up at the national level, the ESRB plays a key role in developing a toolkit of macro-prudential policy instruments that national authorities can use within the European legal framework.