ECB Publishes Report on Lessons Learned from Financial Crisis
The European Central Bank (ECB) has published a report on the lessons learned from the financial crisis with regard to the functioning of European financial market infrastructures.
During the crisis, financial market infrastructures proved to be vital in terms of support for the liquidity and stability of financial markets. Indeed, the risk management framework established by European financial market infrastructures in compliance with the oversight requirements of central banks and securities regulators contributed to containing the systemic impact of the default of critical counterparties.
The report focuses on the challenges that European financial market infrastructures and participating financial institutions faced during the financial crisis with respect to:
Based on the experience reported, the Eurosystem has identified procedures and rules that might be enhanced so that financial market infrastructures, their participants and relevant public authorities are better equipped to cope with similar events in the future.
The Eurosystem supports efforts to address the lessons learned from the financial crisis. Follow-up work on the conclusions drawn in this report has already started, at the initiative, or at least with the involvement, of the Eurosystem in its role as overseer and catalyst, in close cooperation with other relevant public authorities and, in particular, the European Commission (EC). This work relates to:
In the report, the Eurosystem also identifies further follow-up actions addressed, in particular, to financial market infrastructures and their participants, such as:
The report is available on the ECB’s website.