The ECB’s concept and practice of transparency and communication  III.1  Communicating the monetary policy objective and strategy  Let me now turn to the ECB’s concept and practice of transparency and communication. The EU Treaty and the ECB Statute clearly state that the primary objective of monetary policy is to maintain price stability.
The credit risk stays with the originator, preserving the incentives for prudent credit risk evaluation and monitoring. We could thus say that covered bonds are incentive compatible while many asset-backed securities were not, at least in the way the concept was implemented before the crisis.