8  In this regard, over the years more and more countries are easing the requirements to work with the micro and administrative data produced by the public sector. I believe 13  that Spain should not lag behind in this endeavour. In keeping with this assessment, Banco de España provides researchers with the micro data of some of the surveys it conducts, such as the Survey of Household Finances and the Survey of Financial Competences. But more needs to be done. In this regard, we are committed to extending the availability of micro data to other products, such as the balance sheet data of non-financial corporations and some banking data. In this respect, Banco de España has recently joined INEXDA, a network of central banks whose aim is to exchange experiences in the management of granular data in order to facilitate their use by external researchers. Also, we must strive to have other public institutions join us in this initiative. Although the Spanish public sector currently provides samples of administrative data regarding, among others, tax returns and social security records, there is ample room for improvement in this area.
I agree with Raymond Goldschmidt,1 who said: “It is hard to define, but recognisable when encountered”. But any definition would surely refer to the crucial roles of confidence, resilience and reliable liquidity. These are the indicators if you like of what is a state of financial stability. In times of instability or crisis, that confidence - and with it liquidity - can evaporate. Bank runs are phenomena that result from loss of confidence: resulting from or causing withdrawal of liquidity. The fear of collapse of other non-bank financial institutions could also give rise to a drain on liquidity. The huge cost of preparing for Y2K was about preventing the dangers of loss of liquidity. And the horrific events of 9/11 required a temporary massive injection of liquidity. The starting point for this confidence is the players in the market place. It relies on integrity in individual firms and markets, effective standards and high quality prudential controls and risk management practices. But to underpin integrity and confidence in the financial system as a whole also requires financial stability oversight. In the first instance this relies on effective supervision. This is a key aspect of the prevention of financial instability. Financial stability oversight must also look at the system as a whole. So it is involved with the oversight of concentrations and of risk correlations, interrelationships and interdependencies. There is a premium on understanding channels of risk transfer and likely behaviour in response to shocks. This is what enables an appropriate policy response.