In other words, we should amend or rebalance certain existing buffer requirements rather than creating additional buffer requirements. Second, we need strong governance to ensure that capital buffers are released (and subsequently replenished) in a consistent and predictable way across countries in the face of severe, system-wide economic stress.
Centralising macroprudential action at the euro area-level, based on a clear objective framework, could foster a timely policy response and reduce fragmentation across national borders. And third, the creation of macroprudential space should not modify national authorities’ existing macroprudential responsibilities and competences as allocated within the current regulatory framework. Let me conclude.