Furthermore, outright interventions in this market will complement ABS purchases by reinforcing the portfolio rebalancing channels of transmission. That is: the expansion in liquidity that will result from the combined outright operations promotes a diversification of investment patterns in the investor community, and thereby an easing of financing conditions more broadly. Conclusion Let me conclude.
Macroprudential tools for insurance companies could prevent a collective build-up of exposures or dampen amplifiers to avoid spillovers to other sectors. As the Bundesbank pointed out in its latest Financial Stability Review, two examples of instruments under discussion in international fora are insurer-specific systemic capital add-ons and countercyclical capital buffers.1 Three aspects, I believe, are particularly crucial in this context.