The Bundesbank is responsible for operationalising the ‘comply or explain’ mechanism.
While the FSC has not yet issued any warnings or recommendations, it would be useful to
develop the framework underpinning this mechanism, such as the parameters and criteria that
will be used to determine that a warning or recommendation has been complied with or that
an explanation about non-compliance is acceptable (and on how to proceed if it is not), and to
assess the impact of the policy measure and whether it has been effective.