from information available at central banks stemming from their role in the money markets. third, in the area of crisis management and resolution, depending on the nature and feature of the crisis, there is a need for close interaction between the two authorities. provision of emergency liquidity assistance is a clear point in case where central banks need supervisory information for decision - making. in this field, i believe that an important step forward is represented by the recent mou on financial stability arrangement signed by the eu central banks, supervisors and ministries of finance in june 2008. finally, referring more to the supervisory domain but still linked to the central bank interest, the turmoil has evidenced the need for strengthening the macro - prudential dimension of regulation and supervision. this means the regulatory and supervisory requirements should be able to ensure adequate capital and liquidity buffers throughout the economic cycle. in this regard, the actual impact of the new capital adequacy regime under of basel ii will have to be monitored very closely.

european central bank : press conference a€ “ introductory statement introductory statement by mr willem f duisenberg, president of the european central bank and mr christian noyer, vice - president of the european central bank, at the press conference, held in frankfurt am main, 30 august 2001. * * * ladies and gentlemen, i am here to report on the outcome of today's meeting of the governing council of the ecb, which was also attended by mr. reynders, president of the eu council, and mr. solbes from the european commission. following its regular examination of monetary and economic developments and analysis of their implications for the maintenance of price stability in the euro area, the governing council decided to lower the key ecb interest rates by 25 basis points. the governing council considers that the available evidence points to an improvement in the outlook for price developments. this is particularly apparent from the information under the second pillar of the ecb's monetary policy strategy, while that related to the first pillar remains consistent with a favourable outlook for price stability in the medium term. let me elaborate somewhat on the assessment provided under the two pillars of the monetary policy strategy of the ecb. with regard to the first pillar, the three - month average of the annual growth rates of m3 was 5. 9 % in the period from may to july 2001. however, this figure needs to be corrected for holdings of money market paper and short - term debt securities by non - residents of the euro area, which, according to preliminary estimates, have contributed around three - quarters of a percentage point to annual m3 growth. the increase in the rate of growth of m3 over the past few months must be interpreted carefully. it reflects the relatively flat yield curve and the recent weakness in stock markets, both of which made the holding of short - term deposits and marketable paper included in m3 attractive. as it also reflects the fact that consumers needed a higher level of transaction balances to finance the past rise in energy and food prices, recent increases in m3 growth may be transitory and, hence, do not necessarily have implications for price stability in the medium term. in addition, the annual rate of growth of loans to the private sector, although still high, has continued to decline over recent months. regarding the second pillar, there are clear signals of lower inflationary pressures from the demand side. recent data on economic activity indicate that real gdp growth in 2001 will most likely be lower than was expected a few months ago.