Particular emphasis is being laid on issues such as sound governance both at the banking group and at the local level; the definition of management risk tolerance level; the set of monitoring tools institutions use for assessing their liquidity risk; the robustness of stress tests scenarios and the extent to which they reflect Luxembourg idiosyncrasies; the size and composition of local liquidity buffers; the internal consistency of banks’ contingency funding plans and where applicable; intra-day liquidity management.
In line with the Stability and Growth Pact, it is not opportune to use these extra revenues for higher spending. Now is the time to speed up fiscal consolidation in order to help to reduce further the debt-to-GDP ratios in the Community and to approach more quickly fiscal budgetary positions in surplus or balance.