This includes in particular the establishment of effective bank resolution schemes for systemically important financial institutions and an improved supervisory framework with new  2  See e.g Rudi Dornbusch, 1997, “Fiscal aspects of monetary integration”, American Economic Review Papers and Proceedings 87, pp. 221–223. BIS central bankers’ speeches  3  macro-prudential tools.
The establishment of the European Systemic Risk Board and the three European Supervisory Authorities are only first steps. Finally, while the reforms of economic and financial governance that I mentioned are vital, it is crucial that all these measures are complemented by a set of instruments that can directly address financial market tensions.