ECB's Papademos calls for macroprudential schema

The establishment of a framework for macroprudential supervision is urgently needed, said Lucas Papademos, the vice president of the European Central Bank.

Papademos said the main functions of the macroprudential framework included:

the identification and assessment of risks and vulnerabilities in the European Union (EU) financial system (including all markets, institutions and infrastructures);

the issuance of risk warnings; and

the adoption of related recommendations on macroprudential policies