In regulation-making we have followed a gradualist approach and have generally been wary of complex and opaque instruments/products. For the same reason, we insisted on the lenders having a ‘skin in the game’ in securitisation transactions, which curtailed reckless origination of loans without proper appraisal with the sole purpose of distributing the same to investors at a later date.
Ladies and Gentlemen, The first implication is that we have to acquire, improved, and further enhance our skills and capabilities. We need to improve our risk management skill considering that the nature of risk is changing very fast with new technology and products. BIS Review 44/2003  1  The other is the requirement for us to conduct good corporate governance in the business.