A precondition for due diligence and monitoring is that the creditor-borrower relationship is continued. Securitisation of loans made loan discontinuation possible. The bank would extend a loan but immediately pool it together with loans of similar scope and characteristics, so that the idiosyncratic risk inherent in each individual contract would find compensation in the idiosyncratic risk of other contracts.
Thirdly, the requirement to pledge top-up collateral for covered bonds if house prices fall has given mortgage banks an extra obligation. The rating agencies also contribute to this requirement. We have previously drawn attention to these factors and encouraged you to find solutions. I appreciate that you have put on your thinking caps.