While rules foster transparency and aid in avoiding moral hazard, use of judgment is critical as crises or crisis like situations differ from one another and warrant suitably “customised” solution.   Availability of accurate, relevant and timely information is key for any effective framework for financial stability. It is even more critical for crisis management where time is of the very essence.
A framework for managing crises must, therefore, take cognisance of need to ensure availability of timely and relevant information by addressing legal and other hurdles to information collection and obstacles to information-sharing among the agencies.   A crisis management framework needs to be dynamic and responsive to the evolving macrofinancial environment and developments in the financial markets.