The pre-crisis system did its job for many years. By promoting standardization, structuring securities to meet a broad range of investor risk appetites, and issuing guaranteed MBS, Fannie and Freddie brought greater liquidity to mortgage markets and made mortgages more affordable. 1/6  BIS central bankers' speeches  But the system ultimately failed due to fundamental flaws in its structure.
That means, first of all, ensuring that Banking Union delivers on its promise – that the era of national champions is really over. But it also means making a rigorous assessment of the wider policy environment confronting banks – and the various ways in which it might be holding back bank lending.