In a second step, those bankers underestimated the possibility that those loans might default because of a lack of due care and also the opacity of those securitised products. Compensation models rewarding short-term behaviour did the rest. This all set a cycle of events in motion in which loans were systematically granted to customers who were unable to service them.
We hope therefore that this calamity assistance program will empower countryside financial institutions to help fund early recovery and reconstruction in affected areas. The members of the Task Force appeal to all of you to support this program. Together, let us get this program going! Marami pong salamat sa inyong lahat. BIS Review 90/2007  1