Thus, both the ECB and the European System of Central Banks should have access to relevant information from supervisors. We trust that this new structure, which is in charge of macro- and micro-supervision, will be able to help achieve the timely identification of behaviours likely to generate financial crises. But, as the ECB President Jean-Claude Trichet also pointed out, for the proposed macroprudential framework to function as intended, it is crucial that the risk warnings and economic policy recommendations issued by the ESRC be translated into policy action as effectively as possible. That is why I believe that these warnings and recommendations should be reported to the ECOFIN Council, while also providing an appropriate institutional basis that might vest the ECB and the other central banks, as advocated by President Trichet, with the necessary authority, accountability and legal capabilities in relation to the new macro-prudential tasks. 4. Wage incentives in private companies are not adequately correlated with risk management. The link between incentives for managers and risk management is not always obvious. In recent years, financial innovations and products, as well as institutions subject to inadequate regulation and supervision has allowed for building up huge profits in the near run at the price of taking very high risks. There were no incentives to link wages and bonuses to medium- and long-term profits. Thus, managers were encouraged to take risks which they either failed to understand or ignored in order to increase the profitability bonuses were linked to.
Moreover, this framework should be flexible enough to allow countries to give a response according to the features of the crisis specific to the respective country. Anyway, clear principles for preventing legal bottlenecks and the cross-country spillover of negative effects should be put in place, and countries should share the fiscal burden of a cross-border crisis in line with those principles. BIS Review 56/2009  3  6. The IMF strengthened its role after being criticised for not having foreseen the Asian crisis. A few years ago, many economists expected a sharp decline in the IMF's role in the current economic context. Against the background of the current crisis, the world seems to rediscover the role of the IMF. The institution's funds have recently been increased in order to meet the requests of different countries for financial and technical assistance. The statements of the G20 leaders are indicative of the fact that the IMF will assess regularly the measures taken and the global actions necessary to be initiated. Furthermore, a close cooperation between the IMF and the Financial Stability Board (FSB), which will include all G20 countries, members of the Financial Stability Forum, Spain and the European Commission is envisaged. Together, the IMF and the FSB will convey early warnings on macroeconomic and financial risks and will indicate the necessary actions to address such risks. My opinion is that the current financial crisis highlights the fact that in such difficult times, an institution having an image of each economy in the global context is required.