(2015): “Tackling Small and Medium Sized Enterprise Problem Loans in Europe, IMF Staff Discussion Note 2015/04, Washington DC. • Bhatia, A., S. Mitra, A. Weber, S. Aiyar, L. Antoun de Almeida, C. Cuervo, A. Oliveira Santos, and T. Gudmundsson (2019): “A Capital Market Union for Europe”, IMF Staff Discussion Note SDN/19/07, Washington DC.
Supervisors observed that some firms accepted counterparties that were unwilling to provide information about their risk profile as long as they were willing to post collateral. The fallacy of that approach was vividly demonstrated. Positions may rapidly change in value, creating uncollateralized credit exposures to counterparties of unknown creditworthiness.