Consensus-driven approach has strong merits
A consensus-driven approach has strong merits in terms of reaching a common understanding
of systemic risks and facilitating the implementation of measures to address them, but there
are also possible downsides. One such example is the risk of inaction arising from the efforts
by any one member institution to reach consensus within the FSC (to avoid being seen as
proceeding unilaterally), which may lead to delays in taking action.
Conversely, the potential
market signal and implications for the FSC’s functioning if member institutions were to take
independent action on issues that fall within the scope of the FSC may need to be examined.
It would therefore be important for the German authorities to develop protocols and
procedures for reconciling diversity of views in decision-making.
EU Forecast
euf:ba.18.j:57/nws-01