What are the weaknesses in CRT markets? How can we change the institutional framework in order to profit from the social benefits of CRT? 3  Weaknesses in CRT markets  Concerning weaknesses in CRT markets, I would like to draw your attention again to general economic theory as this enables us to identify fundamental problems that are well known to an economist.
We deal with problems such as wrong incentives for economic agents, insufficient transparency, and regulatory arbitrage. Let me point out just a few examples. Moral hazard – One possible weakness in the CRT market results from the securitisation and subsequent distribution of credit risk.