International discussions on repos  Drawing on the lessons learned from the recent global financial crisis, discussions on repos have taken place at international forums such as the G20 and the Financial Stability Board (FSB), with the aim of further increasing the transparency and stability of the repo market. The Bank is also taking part in these discussions (Charts 3 and 4).
The awareness here is that the financial crisis was worsened by the large increase in repos using illiquid securitized products, particularly in the United States. Excessive leveraging and risk taking in the repo market posed a serious threat to financial stability. This development drew attention to the so-called shadow banking problem.