The second pillar gives the bank responsibility to exercise the best ways to manage the risk specific to that bank. Concurrently, it also casts responsibility on the supervisors to review and validate banks’ risk measurement models. The third pillar on market discipline is used to leverage the influence that other market players can bring.
As the Governing Council concluded at the end of its last monetary policy meeting, the monetary policy support that we provide today comes from the combined effect of the additional net asset purchases, the sizeable stock of acquired assets that have been accrued under our asset purchase programme in the past and the forthcoming reinvestments of the maturing securities, and our forward guidance on interest rates.