Let me explain. Our FinTech strategy is based on a twofold approach: 1) implementing a set of innovation facilitators able to cover the entire ‘product life‑cycle’; and 2) promoting dialogue with all stakeholders in order to share good practices and sound common standards. The set of innovation facilitators is composed of three different initiatives: the FinTech Channel, Milano Hub and the regulatory sandbox.
With lenders increasingly unwilling to extend credit against these assets, liquidity-strained institutions made increasingly distressed asset sales, which placed additional downward pressure on asset prices, thereby leading to margin calls for leveraged actors and mark-tomarket losses for all holders of the assets. The margin calls and booked losses would start another round in the adverse feedback loop.