Emergency medicine: crisis management and “enhanced credit support” It is natural to start with the “emergency treatment” that we have provided to the financial system throughout the financial crisis. The alertness of the ECB was reflected in its actions from the very moment that financial tension first emerged. In August 2007 the ECB was the first central bank to respond, acting within hours.
It follows that a subordinated debt policy should be focused on banks and not on their parent or affiliate organizations. In addition, subordinated debt issued at the bank level can provide increased protection for the deposit insurance fund. And, a policy focused on banks would reinforce the regulatory philosophy that the safety net and associated policies are limited to just commercial banks.