Thus, the ECB’s two-pillar strategy may represent a practical way of mimicking the “leaning against the wind” approach. More central bank involvement in supervision? The recent financial market crisis has also highlighted the important role that not only the ECB but all central banks play in safeguarding financial stability and the need to increase interaction between central banks and banking supervisors.
This need for increased interaction, also identified by the Financial Stability Forum in one of its recommendations, would further support and enhance the central banks’ role in financial stability assessments, crisis management and resolution, and liquidity provision.