Despite the pull-back in RMBS issuance by the major banks over recent years, the broader stock of asset-backed securities (ABS) on issue increased by around $ billion over the past 18 months, after remaining broadly stable for the previous 5 years (Graph 10; in addition to RMBS, ABS cover other assets such as car loans and credit card receivables).
[28] On the lending side, with demand tending towards the weaker end of the scale, banks are finding they have less scope to pass on rising costs to customers. Sufficient capital is the best safeguard against risks.