Financial innovation also played a role because the  2  BIS Review 17/2008  unprecedented growth of the securitisation of bank loans, of credit risk transfer (CRT) instruments and of complex structured finance products resulted in the distribution of risks and the creation of risk exposures that could not be managed effectively by financial institutions and other market participants.
As concerns about the extent of the downturn have mounted, euro-area governments have also turned to fiscal policy to support demand. Fiscal policy is providing support through automatic stabilizers and the use of government balance sheets to shore up the financial system, including capital injections to banks. In addition, many euro-area governments have taken discretionary measures to stimulate their economies.